Related to the Economics in Practice on P

question 158

Multiple Choice

Related to the Economics in Practice on p. 202: If the estate in the Chekhov play Uncle Vanya is earning 2 percent and a less risky investment is also earning 2 percent, the price of the estate would ________ to make the two investments financially equivalent.

• A) have to fall
• B) have to rise
• C) have to not change, since the return on investment is the same
• D) none of the above

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