The Lowest Effective Rate of Return You Could Earn on Any

question 99

Multiple Choice

The lowest effective rate of return you could earn on any of these investments is closest to:

• A)6.245%
• B)6.267%
• C)6.100%
• D)6.300%
• E)6.250%

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Definitions:

Machinists

Skilled workers who operate machine tools to fabricate parts and instruments.

Labor Supply

The total hours that workers wish to work at a given wage rate, in a given time period.

Payroll Tax

Taxes levied on employers or employees, and are based on the salary or wages of employees. These taxes fund social security and healthcare programs.

Elastic

describes a condition in which the quantity demanded or supplied of a good or service is highly responsive to changes in its price.