The inflationary premium is that portion of the interest rate that reflects
a. the real return derived by lenders.
b. the rush to buy goods before prices rise.
c. the expected annual rate of decline in the purchasing power of money while a loan is outstanding.
d. the price that one must pay for earlier availability of goods and services during a period of price stability.
C
Economics
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The labor supply curve has a positive slope if the
A) substitution effect outweighs the income effect. B) income effect outweighs the substitution effect. C) demand for labor is elastic. D) demand for labor is inelastic.
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A reduction in net exports will, all other things unchanged, shift the aggregate demand curve to the left.
a. true b. false
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