The definition of interest in economics is ______.
a. the demand for loan money
b. the cost of borrowed funds
c. the rate of price increase
d. the decision to purchase
b. the cost of borrowed funds
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Lily wants to invest in the stock market. She notices that the share price for Great Flowers Inc. has been rising for weeks. She chooses to invest in Great Flowers Inc. because she assumes it will continue to rise purely because of the run it has been on. Lily suffers from:
A. the hot-hand fallacy. B. the gambler's fallacy. C. a present bias. D. the sunk cost fallacy.
Real GDP is GDP
A) in current-year prices. B) in base-year prices. C) in GDP-prices. D) in that year's prices.
Refer to the information provided in Table 25.6 below to answer the question(s) that follow.Table 25.6
Refer to Table 25.6. Commerce Bank's excess reserves equal
A. $1,200,000. B. $2,000,000. C. $2,800,000. D. $4,500,000.
Money exchanges are more efficient than barter because:
a. money exchanges do not require a double coincidence of wants. b. the government guarantees the value of money. c. money usually has an intrinsic value. d. money is backed by a physical commodity. e. opportunity costs are higher with barter trades.