Related to the Economics in Practice on P

question 96

Multiple Choice

Related to the Economics in Practice on p.526: If the estate in the Chekhov play Uncle Vanya is earning 2 percent,the interest rate on suitable securities is 5 percent,and the securities are a better risk than the estate,a potential buyer should require the price of the estate be ________ until the equivalent return on the estate is ________.

• A)raised; 5 percent
• B)lowered; 5 percent
• C)lowered; greater than 5 percent
• D)raised; greater than 5 percent

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