What are the two meanings of interest in economics?
What will be an ideal response?
Interest refers to the price paid by debtors to creditors for the use of funds and refers to the market return earned by capital as a factor of production.
You might also like to view...
An increase in the amount of physical capital will cause
A) an increase in both aggregate demand and real GDP, but have no effect on the price level. B) an increase in both aggregate supply and real GDP, but have no effect on the price level. C) aggregate demand and aggregate supply to increase by the same amounts, causing real GDP to increase and the price level to remain constant. D) an increase in both aggregate supply and real GDP and a reduction in the price level.
The saws, lathes, and drill presses that woodworkers at Cedar Valley Furniture use to produce furniture are called
a. human capital. b. physical capital. c. natural resources. d. technological knowledge.