What factors do some who promote the profitability of elaborate trading strategies leave out?
A) the effect of trading costs and taxes
B) the difficulty of calculating the return on investment
C) ignoring the effect of dividends
D) not accounting for both capital gains and dividends
A
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In the markets for goods and services in the circular-flow diagram, households are buyers and firms are sellers
a. True b. False Indicate whether the statement is true or false
Sophia puts money in the bank and earns a 5 percent nominal interest rate. If the inflation rate is 2 percent, then after one year,
a. Sophia will have 3 percent more money, which will purchase 5 percent more goods. b. Sophia will have 3 percent more money, which will purchase 7 percent more goods. c. Sophia will have 5 percent more money, which will purchase 3 percent more goods. d. Sophia will have 5 percent more money, which will purchase 7 percent more goods.