QUESTION 11

If the government wants to borrow money to build new highways; then the

1. interest rate will be higher.
2. quantity of funds available in the market will increase.
3. private investment will decrease.
4. All of these.

QUESTION 41

On any given day we know a salesman can earn $0 with a 40% probability, $100 with a 20% probability or $300 with 40% probability. His variance of earnings equals

1. $3200.
2. $7840.
3. $10240.
4. 18400.