Interest can be defined as
A) the amount of funds loaned to a creditor.
B) the participation of a shareholder in the operations of a firm.
C) the return paid to owners of capital.
D) the return above opportunity cost paid to owners of a firm.
C
You might also like to view...
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. positive supply side shock. B. negative supply side shock. C. positive demand side shock. D. negative demand side shock.
Empirical analysis generally deals with theory and little data.
A. True B. False C. Uncertain
If the law requires apartment building owners to lower rent, the law of supply predicts that, other things constant, the:
A. quantity of apartment units supplied will fall. B. supply of apartment units will shift leftward. C. quantity of apartment units supplied will rise. D. supply of apartment units will shift rightward.
If the price of a truck in the United States is $25,000, and the exchange rate between the dollar and the euro falls from $1.50 to $1.30 per euro, then the price of the American truck in the EU will
A. fall. B. rise. C. remain the same. D. be irrelevant, because the EU will impose restrictions on imports from the United States.