If the annual interest rate is 4 percent, a consumer who spends $100 today
A) will have to pay back $104 to the bank
B) would have to pay $104 next year to get the same goods
C) will receive $96 from the bank next year
D) would have to pay $96 next year to get the same goods
E) is giving up the ability to spend $104 on goods next year
Correct Answer:
Verified
Q34: Which of the following does not reflect
Q35: The interest rate compensates
A)bankers for their time
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
Q40: By saving, households
A)are supplying loanable funds
B)are demanding
Q41: Exhibit 13-2 Q42: If a firm can borrow or lend Q43: Exhibit 13-3 Q44: Exhibit 13-2 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
