Econ chapter 6

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Based on the information above, the principal amount from which Bill earns interest for the second year is

$1,050

Based the information above, which of these represents the NOMINAL interest earned on Gina's account

$40

Which of these statements about interest rates is TRUE

Interest rates compensate lenders for postponing consumption of the money loaned

Based the information above, which of these represents the REAL interest earned on Gina's account

about $40

An economist would probably state that interest rates compensate lenders for

forgoing the consumption of money loaned

A transfer payment is best described as

money received for which no productive service was performed

Which of the following most accurately expresses the relationship between REAL and NOMINAL interest rates

nominal interest rate = real interest divided by inflation over the prior year

Based on the information above, the principal amount from which Bill earns interest for the second year is

none of the above

A corporation's stockholders are probably best described as the company's

owners

The principal amount of a loan is BEST described as

the average payment required to pay off the loan in one year

The owners of the General Motors Corporation are probably most accurately described as people who

who hold shares of the company's stock


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