With no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6 percent. But, if the rate of inflation was anticipated to be 4 percent, the bank would most likely charge the firm an annual interest rate of:
A. 10 percent.
B. 2 percent.
C. 6 percent.
D. 4 percent.
Answer: A
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The question "Will doctors or lawyers have higher annual incomes?" represents which of the three basic economic questions?
What will be an ideal response?
As more people quit smoking in the United States, what is expected to happen to the price elasticity of supply of cigarettes?
A) It will decrease. B) It will increase. C) It can increase or decrease. D) It will not change.
What should be the priority of politicians? Should they be mainly concerned with conveying and voting the wishes of the people that they represent? Should they be mainly concerned with standing for positions that they feel strongly about? Should they be mainly concerned with securing reelection?
What will be an ideal response?
Average GDP per person is
A. A measure of the economic growth rate of a country. B. The value of the factors of production used to produce output in a country. C. Also known as GDP. D. Also known as per capita GDP.