Whenever a society forgoes current consumption to invest in capital goods,
A) the less the society can consume next year.
B) the easier it will be for the society to consume less in the future because people will become accustomed to less.
C) the more the society can consume in the future.
D) the less capital the society can produce in the future.
C) the more the society can consume in the future.
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Stefanie borrows $10,000 from a bank and withdraws $5,000 from her personal savings to start a cupcakery. The interest rate is 5% for both the bank loan and her personal savings. her opportunity cost of capital is $750
a. true b. false
The relationship that implies that the nominal interest rate is equal to the real interest rate plus expected inflation is called the
A) exchange rate equation. B) Fisher equation. C) interest rate equation. D) term structure of interest rates.