Suppose that you lend $1,000 to a friend and he or she pays you back one year later. What is the opportunity cost of lending the money?
A. There is no cost.
B. the real interest rate that would have been earned on the money
C. the nominal interest rate that would have been earned on the money
D. the implicit cost of the money
Answer: B
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Refer to the scenario above. If the starting bid is $250, ________ will win the auction and will have to pay ________ for the painting
A) Bob; $250 B) James; $400 C) Rachel; $450 D) Joe; $400
Another commonly used algebraic form for a demand function is the semi-logarithmic functional form, ln(Q) = a - bP + cI, where Q is quantity demanded, P is the product price, and I is income
Here, 100 c represents the percentage change in quantity demanded given a one unit increase in income. For a normal good, we should expect the value of c to be: A) positive. B) negative. C) positive or negative. D) We do not have enough information to answer this question.
Which of the following would be a leading indicator?
A. an increase in stock prices B. personal income in the United States C. the number of unemployment claims D. the real interest rate
What is the goal of monetary policy?
What will be an ideal response?