Business Rent Interest Profit-GA

Business Rent Interest Profit-GA - Question 1 5 out of 5...

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Question 1 5 out of 5 points Which of the following generalizations is false? Other things equal: Selected Answer: the interest rate is less on small loans than on larger loans. Answers: interest rates are higher if lenders are imperfectly, rather than purely, competitive. the interest rate is less on small loans than on larger loans. long-term loans normally command higher interest rates than short-term loans. the greater the risk on a loan, the greater the interest rate. Question 2 5 out of 5 points The real rate of interest is the interest rate: Selected Answer: after adjustment has been made for inflation. Answers: charged on long-term government bonds. associated with a riskless loan. that large commercial banks charge their best customers. after adjustment has been made for inflation. Question 3 5 out of 5 points The marginal revenue product (MRP) of land declines as more land is brought into use. As a result the: Selected Answer:
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demand curve for land is downsloping. Answers: demand curve for land is downsloping. demand curve for land is upsloping. supply curve for land is downsloping. supply curve for land is upsloping. Question 4 5 out of 5 points A lower equilibrium interest rate: Selected Answer: increases investment, increases total spending, and increases total output. Answers: increases saving, reduces total spending, and increases total output. decreases saving, increases total spending, and decreases total output. increases investment, increases total spending, and increases total output. decreases investment, decreases total spending, and increases total output. Question 5 0 out of 5 points Refer to the above diagram. If the supply of loanable funds is S0 and the demand for loanable funds is D0, the equilibrium interest rate and quantity of funds borrowed will be: Selected Answer: F and A.
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