Suppose that Emily opens a restaurant. She receives a loan from a bank for $200,000 . She withdraws $100,000 from her personal savings account. The interest rate on the loan is 6%, and the interest rate on her savings account is 2%. Emily's total opportunity cost of capital is

a. $2,000.
b. $4,000.
c. $12,000.
d. $14,000.

d

Economics

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When future labor income rises in a large open economy, it causes the current account to ________ and investment to ________

A) fall; rise B) rise; remain unchanged C) fall; fall D) rise; rise

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An appreciation of the Japanese yen relative to the U.S. dollar will

a. increase aggregate demand in the United States. b. increase aggregate supply in the United States. c. increase aggregate demand in Japan. d. decrease aggregate supply in Japan.

Economics