In a world of certainty, the interest rate reflects
A) the degree of risk.
B) differing time patterns of individuals' consumption preferences.
C) economic growth.
D) qualifications of borrowers.
B
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Which of the following is the best example of a monopolistically competitive industry?
A) land-based long distance telephone service B) wheat farming C) the local electricity producer D) manufacturing of shirts E) cable television
In the figure above, imposing a tax on the product results in a division in which
A) all of the tax is paid by the buyers. B) all of the tax is paid by the sellers. C) the buyers and sellers pay the same amount. D) neither the buyers nor the sellers pay the tax.
In what ways can expectations change your demand for a product today?
What will be an ideal response?
Suppose you obtain a fixed rate mortgage during a period of relatively high inflation. During the next ten years, inflation falls. Are you a winner or a loser due to inflation? Explain why
What will be an ideal response?