Author Question: Refer to Scenario 10.6. If red rubber balls can be produced at any of the three plants, and John ... (Read 45 times)

melina_rosy · **on:** Jul 1, 2018

Refer to Scenario 10.6. If red rubber balls can be produced at any of the three plants, and John decides to produce 1 red rubber ball, at which plant will he produce it?

A) California
B) Florida
C) Montana
D) He is indifferent between California and Florida.
E) He is indifferent between Florida and Montana.

Question 2

If an individual has 10,000 in a savings account paying 3 and the inflation rate is 2, the nominal interest rate is

A) 3 and the real rate is 5.
B) 5 and the real rate is 7.
C) 5 and the real rate is 3.
D) 3 and the real rate is 1.
E) 5.