Suppose that interest payments are $140 per year on a $1,000 loan and $1,188 per year on an $8,485 loan. The interest rates on the two loans are:
A. 14 percent and 20 percent, respectively.
B. 14 percent on both loans.
C. 18.8 percent on both loans.
D. 1.4 percent and 11.8 percent, respectively.
Answer: B
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The knowledge and skills acquired by a worker through education and experience is a description of which factor of production?
A) physical capital B) entrepreneurship C) labor D) human capital
On the modern Phillips curve, the initial impact of productivity improvements that lower the costs of production is shown by ________
A) an upward movement along the Phillips curve to a higher inflation rate B) an upward shift of the Phillips curve leading to higher inflation rates for any unemployment rate C) a downward shift of the Phillips curve leading to lower inflation rates for any unemployment rate D) a downward movement along the Phillips curve to higher unemployment rates E) none of the above
When a firm sells its good abroad below the cost of producing the good the firm is
A) using the concept of comparative advantage. B) dumping. C) taking advantage of the infant industry argument. D) taking advantage of absolute advantage.
Suppose that the MRP of the sixth acre of land is $200 and the rent paid on that land is $200. We can say that
A. not enough land is being rented. B. just enough land is being rented. C. too much land is being rented.