Billy is considering the purchase of a rental house. The house costs $240,000 and it will generate annual revenues of $15,000 and annual expenses of $3,000
Nevertheless, Billy will need to borrow $240,000 at an interest rate of 7% per year in case he decides to make this investment. Should Billy purchase this house? A) No, he will lose money.
B) Yes, his profits will be zero.
C) No, his profits will be positive but close to zero.
D) Yes, he will profit from this investment.
A
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Refer to Table 7-6. If the actual terms of trade are 1 belt for 1.5 swords and 50 belts are traded, how many belts will Morocco gain compared to the "without trade" numbers?
A) 0 B) 10 C) 50 D) 60
If the value of the price elasticity of demand is 0.2, this means that
a. a 20 percent decrease in price causes a 1 percent increase in quantity demanded b. a 0.2 percent decrease in price causes a 1 percent increase in quantity demanded c. a 5 percent decrease in price causes a 1 percent increase in quantity demanded d. a 0.2 percent decrease in price causes a 0.2 percent increase in quantity demanded e. a 100 percent decrease in price causes a 200 percent increase in quantity demanded
Suppose that when the price of milo falls by 10 percent, the quantity of bournvita demanded decreases by 5 percent.
Which of the following is consistent with the idea that high money supply growth leads to high inflation?
a. the quantity theory and evidence from four hyperinflations during the 1920's b. the quantity theory but not evidence from four hyperinflations during the 1920's c. evidence from four hyperinflations during the 1920's but not the quantity theory d. neither the quantity theory nor evidence from four hyperinflation during the 1920's