For a lender, an increase in the real interest rate
A) definitely reduces current consumption and increases future consumption.
B) reduces current consumption and has an uncertain effect on future consumption.
C) has an uncertain effect on current consumption and increases future consumption.
D) has an uncertain effect on both current and future consumption.
C
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Why is it easier for a partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so?
a. The more limited access to a partner's personal funds make the business more careful. b. The large number of partners makes it more likely that the business will be a success. c. The larger number of partners means that people are easier to get along with. d. A partnership has more personal stability and access to more money.
Open economies grow more slowly than closed economies
Indicate whether the statement is true or false