Econ 問題~

2007-09-15 1:41 am
請告訴我以下問題的答案(英文)及答案解釋(中文):

Paul's order of preference of using his money:

First preference: purchase of gold coins
Second preference: savings in banks
Third preference: investment in stocks

Suppose an interest tax is imposed on bank deposits. Explain whether Paul's opportunity cost of purchase of gold coins would change.(4 marks)



Thank you!!

回答 (1)

2007-09-15 2:07 am
✔ 最佳答案
His opportunity cost has changed
Opportunity cost is defined as the highest-valued option forgone
Original O.P. = value of interest savings in banks forgone
As interest tax is imposed, value of savings in banks decreases
As there is a change / decrease in value of forgone option
OP has decreased


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