If the real interest rate were -7%, this is:
a. A clear sign that it is better to borrow than to lend.
b. Not clear sign that it is better to borrow than to lend because this decision depends on expected inflation.
c. Actually, it is impossible for the real interest rate to be -7% because the real interest rate can approach zero, but it can never be less than zero.
d. A clear sign that it is better to lend than to borrow.
.A
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Fill in the blank: Your authors claim ________ has been the rule rather than the exception through almost all of human history
A) price stability B) poverty C) disinflation D) wealth
Refer to Figure 5-13. The market equilibrium price of gasoline is ________ per gallon
A) $3.00 B) $3.75 C) $4.25 D) $5.00
If the players in the figure shown act in their own self-interest, then we know that Dunkin Donuts will earn:
This figure displays the choices being made by two coffee shops: Starbucks and Dunkin Donuts. Both companies are trying to decide whether or not to expand in an area. The area can handle only one of them expanding, and whoever expands will cause the other to lose some business. If they both expand, the market will be saturated, and neither company will do well. The payoffs are the additional profits (or losses) they will earn.
A. $2 million.
B. $1 million.
C. $2 million.
D. $0 million.
Each of the following except _____ takes a liberal position with respect to poverty.
A. Charles Murray B. Barbara Ehrenreich C. Lisabeth and Daniel Schorr D. Frances Fox Piven