Without usury laws, banks will
A) charge very high interest rates to all borrowers.
B) charge higher interest rates to riskier borrowers than to safer borrowers.
C) charge very low interest rates to all borrowers.
D) face no demand for loans.
B
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The lower the discount rate, the higher the present value of a proposed project
a. True b. False
Credibility in threats and commitments in sequential games is based on
a. randomizing one's actions so they are unpredictable b. explicit communications with competitors c. effective scenario planning d. analyzing best reply responses e. none of the above
If buyers today become more willing and able than before to purchase larger quantities of stand up paddle boards (SUPs) at each price of SUPs, then
a. we will observe a movement downward and to the right along the demand curve for SUPs. b. we will observe a movement upward and to the left along the demand curve for SUPs. c. the demand curve for SUPs will shift to the right. d. the demand curve for SUPs will shift to the left.
Refer to the diagram for a purely competitive producer. The firm will produce at a loss at all prices:
A. above P 1 .
B. above P 3 .
C. above P 4 .
D. between P 2 and P 3