Related to the Economics in Practice on p. 522: If the estate in the Chekhov play Uncle Vanya is earning 2 percent, the interest rate in suitable securities is 5 percent, and the estate is a better risk than the securities,
A) the estate will not sell because the return is lower.
B) the securities will not sell because the risk is higher.
C) the buyer would have no preference between the two investments.
D) more information is needed to determine which is the better investment.
Correct Answer:
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