Sarah is able to take out a loan for $5000 for one year at an annual interest rate of 10 percent. After calculating her return to be $450, Sarah will:
A. make $450 on net, and should take out the loan.
B. lose $450 on net, and should not take out the loan.
C. make $50 on net, and should take out the loan.
D. lose $50 on net, and should not take out the loan.
D. lose $50 on net, and should not take out the loan.
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A direct implication of the special interest theory of government is that _____
a. political pressure from special interests pushes government to expand b. special interests get whatever they want c. special interests do not get what they want under Incrementalism d. the general public general can apply more pressure than special interests and thus will move the budget in drastic ways, depending upon public sentiment
The isoquants for inputs that are perfect complements for one another consist of a series of:
a. right angles b. parallel lines c. concentric circles d. right triangles e. none of the above
Assume that the yen price of one U.S. dollar rises to 80 yen and that the Bank of Japan has a target exchange rate of 75 yen per dollar. As a result, the Bank of Japan will intervene in the foreign exchange market by:
a. selling U.S. dollars and buying yen. b. selling both U.S. dollars and yen. c. buying U.S. dollars and selling yen. d. buying both U.S. dollars and yen. e. buying U.S. Treasury securities.
According to the text, the income elasticity of demand for food in industrialized nations is lower than that of poorer nations
Indicate whether the statement is true or false