Use the Table for the Question(s)below

question 66

Multiple Choice

Use the table for the question(s) below.
Consider the following investment alternatives:
-Which alternative offers you the lowest effective rate of return?

• A)Investment A
• B)Investment B
• C)Investment C
• D)Investment D

---

Definitions:

Consumption

The process of using goods and services to satisfy wants or needs.

Revealed Preferences

An economic theory that infers preferences of consumers by observing choices made under budget constraints, instead of through direct inquiry of preferences.

Francs

Currency units formerly used in France and currently used in some countries of the Francophone world, including Switzerland and some African countries.

Consumption

The use of goods and services by households, contributing to their satisfaction and utility.