The interest rate compensates
A) bankers for their time spent on paperwork
B) borrowers for their increased consumption today
C) savers for consumption forgone today
D) consumers for more consumption today
E) the Fed for its efforts to control the money supply
Correct Answer:
Verified
Q30: If we assume that a unit of
Q31: Which of the following does not reflect
Q32: The reward for forgoing present consumption is
A)rent
B)profit
C)roundabout
Q33: If Arnold has a positive rate of
Q34: Which of the following does not reflect
Q36: Interest is a payment for deferred
A)taxation
B)saving
C)consumption
D)investment
E)none of
Q37: If the annual interest rate is 5
Q38: A positive rate of time preference means
Q39: If the annual interest rate is 4
Q40: By saving, households
A)are supplying loanable funds
B)are demanding
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