Answer: a. I, II and III are true
Explanation:
From the question, the statements that are true are:
I. 4% is the desired real rate of interest. II. 6% is the approximate nominal rate of interest required.
III. 2% is the expected inflation rate over the period.
4% is the desired real rate of interest because that's the rate at which the investor is willing to buy the goods in future.
2% is the expected inflation rate over the period because at that rate, there's expectation of future rise in price while 6% is the approximate nominal rate of interest required which is the addition of the 4% and the 2%.
Answer: Option A
Explanation: In simple words, substitution effect refers to the economic phenomenon which states that when price of one good rises the demand for the alternative of that particular good also rises. For example - coke and pepsi.
On the other hand, income effect states that when the price of a commodity rises, a number of consumers might find it hard to purchase due to the price exceeding their income power which further results in lower demand.
Hence from the above we can conclude that the correct option is A.
Answer:
Correct options
A.) the $4 in direct costs she would spend to drive to and from her babysitting job:
Emily will have to spend $2 to and $2 on gas for the babysitting job. She will have to consider if she can bear the additional cost compared to the other job opportunity.
B.) the opportunity costs of not working at the store on a Saturday when she babysits:
When Emily is babysitting she has to consider the opportunity cost of working at the retail store. The fact the she will not have to drive to work, instead working at a place close to her home.
Incorrect option
C.) the cost of clothes and personal items (e.g., phone) Emily uses during babysitting:
On both jobs Emily will incur cost of clothing and other personal items, so this is not a cost she should be considering in making a decision between the two jobs.
Answer:
$90
Explanation:
Option B is wrong because $1,035 is the dividend received from the company by Elizabeth.
Option C is wrong because $270 is the current market price of each share.
Option D is incorrect because $10,350 is the common stock value of 115 shares.
Option A is correct because $90 is Elizabeth's per-share basis in the company for which she received a dividend. Share's price increased to $270 after success.
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