Which of the following statements is true?
a. Interest rates charged to well-known corporations are higher than rates charged to individuals because corporations can afford it.
b. If people expect higher rates of inflation, the market interest rate will decrease because fewer people will borrow.
c. Interest rates in unstable countries are lower than rates in stable countries.
d. The risk cost of doing business in a high-crime area is greater and the cost of borrowing is, therefore, greater there.
e. The lower the tax rate, the greater the cost of borrowing.
D
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The business cycle ________ on Delta Airlines since the company's inception over 80 years ago
A) has always had a negative effect B) has had virtually no effect C) has always had a positive effect D) has had a large effect
Rational expectations are more accurate than adaptive expectations, ________
A) on average B) always C) because they require less information D) except when policies have changed