Answer: C. open a cash account and invest in mutual funds holding high yielding common and preferred stocks
Explanation:
Investing in Mutual funds which hold high yielding common and preferred shares is the best option here. The dividends received will be high enough but will not be taxed too much as dividend tax is limited to 15% thereby saving the investment on taxes.
Also seeing as they will require the investment in other to buy a house in 5 years, they will need something that can be easily liquidated. Mutual funds are easy to liquidate from and so their investment here can be easily withdrawn when the time comes to allow them meet the house down payment.
<span>Some people consider mutual funds a more convenient investment than stocks or bonds because </span>owning an individual stock would carry more risk than a mutual fund. The type of risk is unsystematic. Unsystematic risk means that by owning just one stock, you would be carrying company risk that may not apply to other companies in the same sector of the market.
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If a firm hires an additional worker and discovers that its total output has fallen, then it must be true that marginal physical product is negative.
What is the change in total output that results from hiring one additional worker?
The difference in production brought on by using an additional unit of labor is known as the marginal product of labor.
Does hiring additional workers increase the total revenue at a decreasing rate?
Total output increases with additional employees, although at a slower rate. a stage of production where an increase in the labor force leads to a decline in labor's marginal product. With each new unit of labor added to the mix, a company with this will produce progressively less production.
Learn more about marginal product of labour: brainly.com/question/16690539
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Answer: $50000
Explanation:
Based on the information that's been given in the question, firstly we need to calculate the excess reserves which will be:
= $4500 - (10% × $40000)
= $4500 - $4000
= $500
Then, the money supply that's expanded will be:
= Excess reserve / Reserve ratio
= $5000 / 10%
= $5000 / 0.1
= $50000
Therefore, the answer is $50,000.
