The "real" interest rate charged on a loan is the
A) prime rate.
B) prime rate plus the risk premium.
C) the rate charged minus the costs of supplying credit.
D) the rate charged minus the expected rate of inflation.
D
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If substantial income mobility is present, then there is considerable movement of individuals up and down the income ladder over time
a. True b. False Indicate whether the statement is true or false
The larger the fraction of an investment financed by borrowing, the greater the potential for both profits and losses from that investment
a. True b. False Indicate whether the statement is true or false
______________ is another term for perfect elasticity.
a. Zero elasticity b. Infinite elasticity c. Constant unitary elasticity d. Zero inelasticity
In order to maintain high prices, a cartel must get its members to
A. develop new sources. B. leave production unchanged. C. reduce production. D. increase production.