Assume that Sharon purchases $5,000 worth of a stock. To do so she uses $1,000 of her own money and borrows the remaining $4,000 at a 7.0% interest rate. If the stock's value decreases by 10% in one year and she has to sell the stock at that time, what is her rate of return?
a. ?10%
b. ?50%
c. ?78%
d. ?156%
c
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Suppose the economy is at full employment and firms become more optimistic about the future profitability of new investment. Which of the following will happen in the short run?
A) Unemployment will decline. B) The aggregate demand curve will shift to the left. C) Output will decline. D) Prices will decline.
While waiting in line to buy two tacos at 75 cents each, and a medium drink for 80 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50. For Jordan, the marginal cost of purchasing the third taco would be
What will be an ideal response?
At the beginning of the Vietnam War, increased military spending in the United States decreased unemployment.
Answer the following statement true (T) or false (F)
In comparing tariffs and quotas, we know that
A) neither raises revenues for the federal government. B) both raise revenues for the federal government. C) tariffs raise revenues for the federal government, while quotas do not. D) quotas raise revenues for the federal government, while tariffs do not.