You grow poplar trees. The lumber yard purchases cut trees from you. The trees grow 1 foot per year. Assuming a constant real price per foot for poplar and a real interest rate of 3%, would you sell a 20-foot tree today?
What will be an ideal response?
Do not sell yet. The tree is growing at a 5% rate. Selling the tree and putting the proceeds in the bank would only yield 3%. Wait until the tree is 33.33 feet tall.
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To graph a relationship among several variables, we hold all but ________ variable(s) constant and use the ________ assumption
A) one; scarcity B) two; ceteris paribus C) three; scarcity D) one; ceteris paribus E) one; absence of trend
In the U.S. in 2012 the poverty level for a family of four was about
A) $23,000. B) $34,000. C) $10,000. D) $15,000.
Per capita GNP is defined as a country's GNP divided by its
A) population. B) labor force. C) capitalists. D) None of the above.
How do exchanges seek to reduce default risk in the futures market?
What will be an ideal response?