How did economist Irving Fisher explain interest to a masseur?
What will be an ideal response?
After receiving a massage, Fisher told the masseur that he would pay the $30 he owed as a note payable a hundred years from then without interest. He asked the masseur if that would be acceptable. The masseur replied that he could not afford to wait that long to be paid. Fisher then asked what price he would require to wait a period of time, say ten years. The masseur stated that he would have to be paid more than the thirty dollars. Fisher then explained that the amount that he would pay above the thirty dollars for the use of the money for a period of time was interest.
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The table above gives a nation's investment demand and saving supply schedules. It also has the government's net taxes and expenditures. The loanable funds market is in equilibrium when the real interest rate is
A) 7 percent B) 4 percent. C) 3 percent D) 6 percent. E) 5 percent.
An example of an in-kind benefit is
a. a welfare payment. b. capital gains. c. a charitable contribution of money. d. public housing.
The elasticity of any demand curve is the same as its slope
a. True b. False Indicate whether the statement is true or false
Which of the following is not included as "net income" in the U.S. balance of payments?
a. Income paid by a U.S. company to foreign consultants. b. Profits earned by U.S. companies from foreign operations. c. Foreign dividends received by U.S. residents. d. Profits earned by U.S. companies from foreign operations and reinvested abroad. e. All the above are includedas net income in the U.S. balance of payments.