Answer:
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<u>Answer: </u>
1. False
2.False
3. True
4. False
5. True
<u>Explanation:</u>
If short term assets give different rates then the investor will move wealth towards higher returns as he can make profit in a short term.
The practical difference between both interest rates are the payback time. Short term has lesser interest paid while long term has high interests paid.
It will be beneficial for home owners if the long term interest rates fall.
Long term interest rates are charged on the loans that are borrowed for more than one year. Short term interest rates are for loans within a period of ten months to one year.
The value of the money becomes lesser when the money is held without any investments as the short term interest rates falls.
I believe the answer is B
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Answer:
c. 3 loaves of bread for Andy and 1 loaf of bread for John.
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
For Andy, the opportunity cost of producing 1 pound of butter is = 24 / 8 = 3
For John, the opportunity cost of producing one pound of butter is 8/8=1
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