Risky borrowers pay higher interest rates than safer borrowers, in order to persuade lenders to accept the higher risk of default.
Answer the following statement true (T) or false (F)
True
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In his tests, Leontief used an input-output table to
A) calculate the capital and labor required to produce $1 million of U.S. exports and imports. B) calculate the labor productivity of American workers relative to foreign workers. C) calculate the capital productivity of American capital relative to foreign capital. D) All of the above.
Which of the following would be most likely to improve the standard of living of the residents of a less-developed country?
a. the development of strong labor unions b. a sharp increase in the legal minimum wage c. an increase in expenditures on education and capital investment d. rapid growth rate of the money supply
Price discrimination is the business practice of
a. bundling related products to increase total sales. b. selling the same good at different prices to different customers. c. pricing above marginal cost. d. hiring marketing experts to increase consumers' brand loyalty.
Refer to the information provided in Figure 25.2 below to answer the question(s) that follow.
Figure 25.2Refer to Figure 25.2. Suppose money demand is currently at Point A. A decrease in the interest rate to 5%, ceteris paribus, will likely
A. increase the quantity of money demanded from $100 million to $200 million. B. increase the quantity of money demanded from $100 million to $150 million. C. decrease the quantity of money demanded from $200 million to $100 million. D. increase the quantity of money demanded from $150 million to $300 million.