Market rate of interest, Suppose you have an offer of

Market rate of interest

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Reference no: EM13914212

Suppose you have an offer of $200,000 to sell your house this year. The market rate of interest is 10%. You expect to be able to sell your house next year for $230,000.

In particular, what does it tell you about how prices must behave in a market for nonrenewable resource

a. Prices in the market for nonrenewable resources follow hotelling's rule, meaning prices should rise at the rate of interest

b.As stated in the previous question, these examples are not related

c. We should preserve natural resources at all cost

d. We should use the nonrenewable resources since we will leave more capital goods for future generations

Reference no: EM13914212

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