The real rate of interest is
A) the nominal interest rate minus the anticipated rate of inflation.
B) the interest rate actually paid explicitly by the borrower.
C) the interest rate received by the lender minus the handling charges of the loan.
D) the average rate of interest over the last 20 years.
Answer: A
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Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. CalculatorsPer HourComputersPer HourSmith10010Jones1206If Smith and Jones devote all of their resources to producing computers, then the maximum number of computers they can produce in an hour is:
A. 10. B. 16. C. 6. D. 120.
According to the figure above, which point or points correspond to full employment?
A) only point a B) only point b C) only point c D) points a and b E) points a, b, and c
The form of business organization with the most flexibility of management is the
a. sole proprietorship. b. partnership. c. corporation. d. cooperative.
Firms undertake multinational operations in order to
A) hire low-wage workers. B) manufacture in nations they have difficulty exporting to. C) obtain necessary factor inputs. D) All of the above