The real interest rate represents:
a. the additional buying power received by a lender or an investor.
b. the capital gains of a lender or an investor
c. the opportunity cost of lending the money.
d. the purchasing power of the money received by a borrower.
a
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Examples of assets that are included in household wealth would be
a. stocks, bonds, and savings accounts. b. stocks, loans owed, and savings accounts. c. stocks, bonds, and mortgages. d. stocks, credit cards, and savings accounts.
Refer to Table 18.1. M1 in this simple economy equals
A) $500. B) $550. C) $1,050. D) $4,550.
Net exports of goods and services are defined as the
A) value of the goods we sell to foreigners. B) income we receive from selling goods to foreigners. C) value of exports minus the value of imports. D) value of exports minus the income we receive from foreigners. E) value of exports plus the income we receive from foreigners.
Refer to Figure 6-11. What is the value of the price elasticity of supply between g and h?
A) 0.5 B) 2 C) 20 percent D) 0.02