In most cases, the higher is the quality of the collateral for a loan is
A) the higher is the interest rate.
B) the lower is the interest rate.
C) the riskier is the loan.
D) the greater is the handling charge for the loan.
Answer: B
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Students arriving late to class are a potential negative externality because their tardiness may interrupt the instructor and distract students
Can you think of any way in which this externality could be curbed? That is, can you think of any methods that could be employedto internalize this negative externality?
Where the IS and LM curves intersect:
a. actual expenditure is equal to planned expenditure. b. output equals aggregate demand. c. savings plus taxes equals investment plus government spending. d. all of the above.
The substitution effect of a change in wage rate on a firm's demand for labor input will be more significant
a. the greater the change in output. b. the more sharply curved are the firm's isoquants. c. the flatter are the firm's isoquants. d. the larger the quantity of labor employed.
In a competitive labor market, if the supply of labor decreases, wages will:
A. decrease. B. increase. C. drop to zero. D. remain the same.