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:

Axon

Root, or single fiber, of a neuron that carries messages to other neurons.

Voltage Difference

The measure of electrical potential between two points, which drives the flow of electrons or current in a circuit.

Cell Membrane

The biological membrane that separates the interior of all cells from the outside environment, providing structural support and controlling the movement of substances in and out of cells.

Microelectrode

A microscopic insulated wire or a saltwater-filled glass tube whose uninsulated tip is used to stimulate or record from neurons.