The figure above shows the supply and demand curves for pizza. If the market is at its competitive equilibrium, what area in the graph above represents:

Explain why the real interest rate is the opportunity cost of loanable funds

What will be an ideal response?

Use the following statements to answer this question: I. Corporate paper rates are typically less than one percent higher than Treasury bill rates. II. Treasury bill rates may be viewed a short-term, risk-free rates

A) I and II are true. B) I is true and II is false C) II is true and I is false D) I and II are false