You Are Headed to the Mountains for Some Climbing This

question 62

Multiple Choice

You are headed to the mountains for some climbing this summer and you need some gear.The local mountaineering shop is offering 6% financing on all purchases before the end of the month.Your savings account is currently paying 5%,and you are in a marginal tax bracket of 28%.Which of the following is true?

• A)Borrow from the mountain shop - it is cheaper.
• B)Take the money out of savings - it is cheaper.
• C)It does not matter where you get the money;it will cost the same.
• D)You should seek competent financial help.
• E)None of the above are true.

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Definitions:

Agricultural Output

The total quantity of agricultural products produced and harvested in a given period.

Oil Embargo

An official ban on the trade of oil with a particular country or countries, often imposed by one or more countries as a form of economic sanction.

OPEC Countries

Member countries of the Organization of the Petroleum Exporting Countries, an intergovernmental organization that coordinates petroleum policies among its members to secure fair and stable oil prices.

Aggregate Supply Curve

A graphical representation that shows the relationship between the overall price level in an economy and the total output produced by firms.