Suppose Amy uses $50,000 of her own money to start a business. The rate of interest she could earn in a saving account is 1 percent, and the rate of interest she could earn by investing in bonds is 5 percent. What is Amy's opportunity cost of capital when she uses her money to start his own business? A B C D $2,550 per year $0 per year $2,500 per year $5,000 per year

Suppose Amy uses $50,000 of her own money to start a business. The rate of interest she could earn in a saving account is 1 percent, and the rate of interest she could earn by investing in bonds is 5 percent. What is Amy's opportunity cost of capital when she uses her money to start his own business? A B C D $2,550 per year $0 per year $2,500 per year $5,000 per year

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Emerging Asia: Capital Flows $ billion Emerging Europe: Capital Flows $ billion 2013 2014 2015 Est. 2016 Proj. 2015 Est. 2016 Proj. 2013 2014 Non-Resident Capital Inflows 676 619 191 350 Non-Resident Capital Inflows Private Inflows 214 38 51 Private Inflows 668 613 185 344 218 31 -20 43 Equity Investment 396 442 378 375 Equity Investment 64 52 17 44 Direct Investment 349 372 364 313 Portfolio Investment Direct Investment 66 59 33 42 47 70 14 62 Portfolio Investment -2 -7 -16 Private Creditors 272 171 -193 -31 Commercial Banks 127 73 -165 -38 Private Creditors 154 -22 -37 -1 Nonbanks 145 99 -29 Commercial Banks 20 32 -14 10 Official Inflows International Financial Institutions Nonbanks 134 -54 -23 -11 3 4 4 Official Inflows -4 17 8 Bilateral Creditors 3. International Financial Institutions -12 14 10 Bilateral Creditors 4 3 -2 Resident Capital Outflows Private Outflows Equity Investment Abroad Resident Lending/Other Reserves (- = Increase) Net Capital Flows incl. Reserves -961 -801 -543…
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