What is a normal rate of return?
What will be an ideal response?
A normal rate of return is the amount that must be paid by an investor to induce investment in a business. It is the opportunity cost of capital.
You might also like to view...
Financial innovations occur because of financial institutions search for
A) profits. B) fame. C) stability. D) recognition.
"It is only insofar as some sort of order arises as a result of individual action but without being designed by any individual that a problem is raised which demands a theoretical explanation.". This statement is from:
a. Samuelson b. Friedman c. Stiglitz d. Hayek e. Marx
If the government reduces transfer payments, what happens to the budget deficit? What curve does this change in the market for loanable funds, which direction does it shift, and what happens to the equilibrium interest rate?
A PPF is bowed outward as a result of
A) constant opportunity costs. B) increasing opportunity costs. C) decreasing opportunity costs. D) scarcity. E) choice.