Use the Table for the Question(s)below

question 21

Multiple Choice

Use the table for the question(s) below.
Suppose you have the following Loans/Investments
-If your income tax rate is 30%,then the after-tax return you receive on your money market fund is closest to:

• A)3.7%.
• B)5.1%.
• C)3.6%.
• D)4.2%.

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Definitions:

Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price or other economic factors.

Demand

The desire of purchasers, consumers, or clients for a particular good or service, coupled with the ability and willingness to pay for it.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded for a given period.

Elastic

Describes a situation in which the supply or demand for a good or service significantly changes in response to price changes.