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Murray's Can Borrow Money at a Fixed Rate of 10

question 10

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Murray's can borrow money at a fixed rate of 10.5 percent or a variable rate set at prime plus 2.25 percent.Fred's can borrow money at a variable rate of prime plus 1.5 percent or a fixed rate of 12 percent.Murray's prefers a variable rate and Fred's prefers a fixed rate.Given this information,which one of the following statements is correct?


Definitions:

United States

A country located in North America, consisting of 50 states and known for its large economy and diverse population.

Greece

A country in southeastern Europe known for its rich history, archaeological sites, and significant contributions to Western civilization's art, philosophy, and politics.

Absolute Advantage

The ability of an entity to produce a good or service more efficiently than its competitors with the same amount of resources.

Resources

Assets, materials, and inputs used to produce goods and services, including time, labor, capital, and natural resources.

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