Refer to the Data Provided in Table 11 -Refer to Table 11

question 181

Multiple Choice

Refer to the data provided in Table 11.2 below to answer the following question(s) .
Table 11.2 $$\begin{array}{l}\begin{array} { l c c } &\text { Total Investment }&\text {Expected Rate of Return }\\ { \text { Project } } & \text { (dollars) } & \text { (percentage) } \\\hline \text { New bookkeeping software } & \$ 150,000 & 5 \\\text { New tractor } & \$ 200,000 & 12 \\\text { New grain storage tanks } & \$ 250,000 & 10 \\\text { Irrigation system } & \$ 500,000 & 15 \\\hline\end{array}\end{array}$$
-Refer to Table 11.2. If the interest rate is 13%, then the farmer will engage in investment of

• A) $500,000.
• B) $600,000.
• C) $700,000.
• D) $1,100,000.

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Definitions:

Aggregate Supply

Aggregate supply is the total supply of goods and services that firms in a national economy plan to sell during a specific time period, affected by several factors including production costs and labor availability.

Short-Run

A period in economics where at least one input is fixed, usually applied to analyze immediate impacts on the economy.

Money Supply

The full quantification of financial means in an economy at a certain point in time, including tangible currency like coins and notes and virtual balances in checking and savings accounts.

Interest Rates

The percentage of a sum of money charged for its use, influencing investment and consumption in the economy.