Author Question: If a bond pays 11.5 percent interest a year and a bank deposit pays 3.5 percent, the opportunity ... (Read 110 times)

plus1 · **on:** Jun 30, 2018

If a bond pays 11.5 percent interest a year and a bank deposit pays 3.5 percent, the opportunity cost of holding the deposit is:
a. 11.5 percent.
b. 15 percent.
c. 8 percent.
d. 3.5 percent.
e. 13.5 percent.

Question 2

Which of the following is likely to result in a higher equilibrium price?
a. An increase in both demand and supply.
b. A decrease in both demand and supply.
c. An increase in demand and a decrease in supply.
d. A decrease in demand and an increase in supply.