Suppose That the Interest Rate Available to You on a Long-Term

question 30

Multiple Choice

Suppose that the interest rate available to you on a long-term bond is 4 percent. If you hold $1,000 of your wealth in currency instead of in the form of a bond, the annual opportunity cost is

• A) $0.04.
• B) $4.
• C) $40.
• D) $400.

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Definitions:

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