The interest rate:
A. is expressed as a percentage per dollar borrowed and per unit of time.
B. tells us how much less money is worth today than in the future.
C. exists only because lending is risky.
D. All of these statements are true.
A. is expressed as a percentage per dollar borrowed and per unit of time.
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Differences in growth rates cannot explain why
A. some countries are wealthier than others. B. income inequality exists. C. the convergence hypothesis may hold. D. the productivity growth rates in China and Japan are converging.
A vertical supply curve exhibits
A) a constant elasticity of supply. B) a perfectly inelastic supply curve. C) Both A and B are true. D) None of the above.
Which of the following statements best describes the role played by prices in a command economy such as the former Soviet Union?
a. Prices were used to allocate resources. b. Prices played the same role as in a market economy. c. Prices were used to ration final goods and services but not to allocate resources. d. None of these statements is descriptive.
Compared to their percentage shares in 1968, over the next 40 years, the percentage shares of each of the lowest four quintiles
A. rose substantially. B. rose somewhat. C. stayed about the same. D. declined.