Lenders generally want a higher interest rate to compensate them when loans stretch over a longer period because:

A. the opportunity cost increases over time.
B. there's more uncertainty about potential future investment opportunities.
C. lenders want to be compensated for being unable to get their money back quickly.
D. All of these are true.


D. All of these are true.

Economics

You might also like to view...

Which of the following is not considered to be a resource in economics?

A. land B. labor C. machinery D. money

Economics

If the dollar depreciates against the British pound, U.S. goods sold in ________ would become less expensive and British goods sold in ________ would become more expensive

A) Great Britain; Great Britain B) the United States; Great Britain C) Great Britain; the United States D) the United States; the United States

Economics

In the long run, for a perfectly competitive market, if economic profit is

A) less than zero, then some firms will exit the market and the market supply curve will shift leftward. B) greater than zero, then some firms will enter the market and the market supply curve will shift rightward. C) equal to zero, then there is no entry or exit of firms into or out of the market. D) All of the above answers are correct.

Economics

A microeconomist would study all of the following issues EXCEPT

A) the impact of a change in consumer income on the sales of corn. B) the impact of a snowstorm on the sales of snow shovels. C) the most efficient means for General Motors to produce an automobile. D) the effect of a change in income taxes on the nation's rate of unemployment.

Economics