If a loan has a probability of not being paid back, the interest rate will:
A. be the real interest rate.
B. likely include a risk premium.
C. lower than the market interest rate.
D. insufficient to compensate bondholders.
Answer: B
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The in-kind Medicare transfer increased real incomes of the aged by 17 to 40 percent
Indicate whether the statement is true or false
For a fixed money supply, a higher level of real balances implies
A. a higher price level. B. a lower price level. C. higher velocity of money. D. lower velocity of money.
Answer the following statement(s) true (T) or false (F)
1. Supply refers to how much of a product or service is available for purchase at a given time. 2. The law of demand states that as the price for an item or service increases, so will the supply and that if the price is lower, the supply will also be less. 3. Mae bakes 100 cinnamon rolls each day to sell at her café, and each day she sells out before breakfast is over. Many of her customers ask for, but don't get one. Her customers ask that she bake more cinnamon rolls each day. This is an example of a shortage. 4. Holding all other factors constant, prices are set slightly above the point where supply equals demand. 5. The price at which supply of an item or service equals the demand for that item is known as the market price.
If incomes in the United States increase, other things equal, then U.S.
What will be an ideal response?