Solved

Suppose You Inherit an Orange Grove and It Generates an Annual

Question 159

Multiple Choice

Suppose you inherit an orange grove and it generates an annual return of $16,000. You want to sell it. The interest rate is 8 percent. If the government imposed an interest rate ceiling at 10 percent, the ceiling would cause the price of your grove to


A) go down
B) go up
C) stay the same
D) be irrelevant because you would be unable to sell the grove at any price when the price ceiling is higher than the interest rate
E) not enough information given

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents