What functions does capital income serve in the economy?

What will be an ideal response?

Interest serves as an incentive to postpone gratification. Profit serves as a reward for innovation and risk taking.

Economics

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Normally, the Federal Deposit Insurance Corporation would shut down a bank when:

A) assets of the bank equal the liabilities of the bank. B) assets of the bank exceed the liabilities of the bank. C) liabilities of the bank exceed the assets of the bank. D) stockholders' equity is greater than zero.

Economics

Nominal exchange rates differ from real exchange rates in that nominal exchange rates

A) do not correct for differing interest rates across countries. B) do not measure the purchasing power of the currency. C) are fixed, while real exchange rates are flexible. D) are flexible, while real exchange rates are fixed.

Economics