Suppose you purchased 100 shares of stock in 2010 for 25 a share ...

[mikaylakyoung]

Suppose you purchased 100 shares of stock in 2010 for 25 a share and you sell them today for 50 a share. If the capital gains tax is 28 percent, your tax liability is
 
  A) 70.
  B) 700.
  C) 2500.
  D) indeterminate without knowing the inflation rate.

Question 2

Classical economists argued that
 
  A) there would always be an excess of saving over investment.
  B) workers had money illusion.
  C) excess savings would create unemployment.
  D) a flexible interest rate would make saving equal to investment.

[asdfghjkl;]

Answer to Question 1

B

Answer to Question 2

D