Which of the following generalizations is false? Other things equal:
A. interest rates are higher if lenders are imperfectly, rather than purely, competitive.
B. the interest rate is less on small loans than on larger loans.
C. long-term loans normally command higher interest rates than short-term loans.
D. the greater the risk on a loan, the greater the interest rate.
Answer: B
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Refer to Figure 2-4. A movement from X to Y
A) is the result of advancements in plastic production technology only, with no change in food production technology. B) could be due to a change in consumers' tastes and preferences. C) is the result of advancements in food production technology only, with no change in the technology for plastic production. D) could occur because of an influx of immigrant labor.
Which of the following explains the cause of the change in the unemployment rate at the end of a recession?
A) Firms are hesitant to rehire laid off workers as they continue to operate below capacity. B) Discouraged workers leave the labor force, and this makes the unemployment rate rise. C) Discouraged workers return to the labor force, and this makes the unemployment rate fall. D) Firms rapidly hire new workers at the first sign of an increase in demand for their goods.
Why might fiscal stimulus crowd out investment?
What will be an ideal response?
Fogel and Engerman (1974) argue that slavery was economically viable until 1860
Indicate whether the statement is true or false