Which of the following is TRUE regarding the real interest rate?
I. The real interest rate is the opportunity cost of borrowed funds.
II. The real interest rate equals the nominal interest rate adjusted for inflation.
A) I
B) II
C) both I and II
D) neither I nor II
C
Economics
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The demand for bonds is
A) equivalent to the demand for loanable funds. B) equivalent to the supply of loanable funds. C) represented by an upward-sloping line when the price of bonds is on the vertical axis and the quantity of bonds demanded is on the horizontal axis. D) represented by a downward-sloping line when the interest rate is on the vertical axis and the quantity of bonds demanded is on the horizontal axis.
Economics
Purchasers of corporate bonds lend money to a corporation
a. True b. False Indicate whether the statement is true or false
Economics