If the rate of return is lower than the cost of borrowing:
A) the investor will lose money on net after paying back the loan.
B) the investor should take out the loan.
C) the borrower will make money by taking out the loan.
D) All of these are true.
Correct Answer:
Verified
Q24: Borrowing is like:
A) selling the right to
Q30: If Jen takes out a $2,000 loan
Q30: The demand for loanable funds comes from:
A)investment.
B)savings.
C)the
Q31: Saving is like:
A) selling the right to
Q32: The equilibrium in the market for loanable
Q37: The rate of return describes the:
A)expected profit
Q38: Savings and investment are equal:
A)at the equilibrium
Q39: If Howard takes out a $400 loan
Q39: The supply of loanable funds comes from:
A)savings.
B)investment.
C)borrowers.
D)None
Q40: The quantity of savings that people are
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