You use $40,000 of your own money to start a catering business. During the first year you earn a 5% return on that investment. If the current interest rate on savings is 8%, you earn an economic profit of
A. -$1,200.
B. $1,200.
C. $2,000.
D. $3,200.
Answer: A
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Indicate whether the statement is true or false
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