"Pure rate of interest" refers to the interest rate that
A) borrowers pay to lenders in their own family or circle of close friends.
B) serves solely as payment to lenders for giving up current use of their funds.
C) is the difference between the actual rate and the theoretical rate.
D) measures the compensation to lenders for taking on the risks involved.
Correct Answer:
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Q122: The pure rate of interest in economic
Q123: Other things equal, the interest rate on
Q124: Interest is the
A)price paid for the use
Q125: The equilibrium interest rate equates
A)nominal and real
Q126: A bank charges one borrower (A)8 percent
Q128: Suppose a person pays $80 of annual
Q129: Interest rates of various loans vary over
Q130: In general, if we compare two loans
Q131: Economists would not consider which one of
Q132: The price paid for the use of
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