Related to the Economics in Practice on p. 202: If the estate in the Chekhov play Uncle Vanya is earning 2 percent, the interest rate on suitable securities is 5 percent, and the securities are a better risk than the estate, a potential buyer should require the price of the estate be ________ until the equivalent return on the estate is ________.

Question

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The estate is earning 2 percent, and the interest rate on suitable securities is 5 percent. A potential buyer should require the price of the estate be lowered until the equivalent return on the estate is greater than 5 percent.

Related to the Economics in Practice on P