The risk-free rate is:
A) the interest rate at which one would lend if there were no risk of default.
B) the interest rate borrowers get when the loan is extremely short term.
C) the interest rate the government charges for the loans it gives out.
D) None of these is true.
Correct Answer:
Verified
Q63: Crowding out is reduction in:
A) private borrowing
Q65: A default happens when:
A)a borrower fails to
Q67: If lenders think that a particular borrower
Q68: Evidence from the Great Depression suggests that
Q69: The risk-free rate is usually approximated by
Q69: The reduction in private borrowing that is
Q72: When a borrower fails to pay back
Q73: When the government increases its demand for
Q94: Loans that are secured against an asset:
A)
Q97: The difference between the risk-free rate and
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