Suppose Chase Bank owns a truck that it leases to Ryder Inc. The truck's value is $100,000 and it is expected to deteriorate at a rate of 5 percent per year. If the real interest rate is 2 percent, then Chase's total costs of owning the truck are
A. $5,000
B. $1,000
C. $100
D. $7,000
Answer: D
You might also like to view...
The concept of "government failure" implies
a. laissez faire is always best. b. government intervention is always justified since government never fails. c. no market failure can be corrected by government intervention. d. government intervention to correct a "market failure" sometimes fails.
The supply-side policies of the Reagan and Bush administrations led to high levels of
a. budget surpluses. b. unemployment. c. inflation. d. budget deficits.
Which statement is true?
A. The largest merger in history involved Chase Manhattan Bank. B. There have been only two mergers in our entire history valued at over $15 billion. C. It is illegal under our antitrust laws for two firms in the same industry to merge. D. None of these statements are true.
Refer to the above figure. Moving from point A to point B indicates
A. a decrease in supply. B. a decrease in quantity supplied. C. an increase in supply. D. an increase in quantity supplied.