If the rate of return is higher than the cost of borrowing the:
A. investor will lose money on net after paying back the loan.
B. investor will make money on net after paying back the loan.
C. saver will make less money on net than the borrower.
D. borrower will make more money on net than the saver.
B. investor will make money on net after paying back the loan.
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If a firm's short-run total cost curve lies above its total revenue curve at all output levels, the goal of the firm should be to
a. minimize total cost b. maximize total revenue c. minimize its loss d. minimize marginal cost e. maximize marginal revenue
If the Fed wishes to decrease the money supply it could
a. decrease the discount rate. b. decrease reserve requirements. c. sell government securities on the open market. d. Do any of the above.