(Advanced analysis) Ricardo deposits $1,000 into his savings account. What rate of interest would he have to earn on his savings for his deposit to be worth $2,000 in eight years?
A. 8.75 percent.
B. 9.1 percent.
C. 10 percent.
D. 10.4 percent.
B. 9.1 percent.
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Using international asset trade, countries can
A) never really eliminate all risk. B) eliminate all risk. C) actually increase their risk in some cases. D) eliminate all their risk except for emerging markets. E) never really diversify their holdings.
To earn a higher return on the assets in the Social Security trust fund, a suggestion has been made to allow the trust fund to
A) buy government bonds. B) sell limited partnerships. C) sell insurance. D) invest in the stock market.
Refer to the above figure. Suppose that the supply curve shifts from SA to SB while the demand curve shifts from DA to DB. Which of the following is TRUE about the results of the shifts in the supply and demand curves?
A) The equilibrium price increases while the equilibrium quantity remains unchanged. B) Both the equilibrium price and equilibrium quantity increase. C) The equilibrium price remains unchanged while the equilibrium quantity increases. D) Both the equilibrium price and equilibrium quantity remain unchanged.
The theory of adaptive expectations holds that people form the most accurate possible expectations about the future using all information available to them
a. True b. False Indicate whether the statement is true or false