Which of the following questions is addressed when hiring capital, but not addressed when hiring labor?
A) How much are future profits worth today?
B) How much are today's profits worth in the future?
C) How much are the future's profits worth in the future?
D) How much are today's profits worth today?
E) All questions present when capital is purchased are present when labor is purchased.
A
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All of the following are examples of spending on goods and services in the circular flow model except
A) Chaitanya buys a new spa pedicure chair for her expanding nail salon business. B) Hernan buys a pizza at Papa C's. C) Lenny buys a new digital camera to take pictures at his son's graduation. D) Amanda purchases a new electric guitar to pursue her hobby seriously.
The interest rate:
A. is expressed as a percentage per dollar borrowed and per unit of time. B. tells us how much less money is worth today than in the future. C. exists only because lending is risky. D. All of these statements are true.