Suppose I Have $1, 000 to Put into a One-Year

question 12

Multiple Choice

Suppose I have $1, 000 to put into a one-year CD.Community Bank offers 5 percent interest, Floatbank offers 5.25 percent, and Squidbank offers 5.40 percent.If I place my money in Squidbank, my economic profit on the investment is

• A)5.40 percent
• B)5 percent
• C)0.40 percent
• D)0.15 percent
• E)-0.40 percent

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Definitions:

Non Binding Price Floor

A non binding price floor is set below the market equilibrium price, having no effect on the market because it does not restrict supply or demand.

Explicit And Implicit Coercion

Refers to the overt and subtle ways in which individuals or groups may be forced or pressured into behaving in certain ways.

Desirable Consequences

Positive outcomes or benefits that result from a particular action or set of actions.

Proposed Changes

Suggestions or plans put forward for consideration or action to modify or alter existing methods, processes, or structures.