The ABC Corporation earned a real rate return of 4.5 percent on an investment. In the economy, the nominal rate of interest was 6 percent and the rate of inflation was 3 percent. We can conclude that
A. the investment was profitable.
B. the investment was unprofitable.
C. the real rate of interest was 9 percent.
D. the real rate of interest was 1.5 percent.
Answer: A
You might also like to view...
"All Americans should have access to health care" is an example of
A) a positive statement. B) a microeconomic argument. C) a factual statement. D) a normative statement.
A ________ p-value means the probability is ________ of getting the result you find in the sample data if the null hypothesis is true.
A. small; small B. negative; certain C. positive; certain D. small; large
Recall the Application about determining the optimal level of methane abatement to answer the following question(s).Recall the Application. Applying the marginal principle to methane reduction suggests that efforts at reduction should:
A. target the sources of methane that are cheapest to abate, or recover, first. B. target the most costly to recover sources of methane first. C. continue until methane is reduced to zero metric tons because the harm from methane is so high. D. not be undertaken because livestock is one of the major sources of methane, and livestock is not an industrial source of pollution.
If in the market for apples the supply has decreased, then
A) the supply curve for apples has shifted to the right. B) there has been a movement upwards along the supply curve for apples. C) the supply curve for apples has shifted to the left. D) there has been a movement downwards along the supply curve for apples.