If timber prices are rising slower than the rate of interest then
A)investors should harvest timber instead of buying bonds.
B)investors should buy bonds instead of harvesting timber.
C)timber prices should increase.
D)bond prices should decrease.

Question

Quizplus · Accepted Answer

If timber prices are rising slower than the rate of interest, it means that investing in bonds would yield better returns than investing in timber. Therefore, investors should buy bonds instead of harvesting timber.

If Timber Prices Are Rising Slower Than the Rate of Interest