Interest rates are positive because inflation makes purchases more expensive in the future than today
Indicate whether the statement is true or false
False. Even if inflation were zero, interest rates would be positive since people prefer present consumption to future consumption.
Economics
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Refer to Figure 12-9. At price P3, the firm would produce
A) Q2 units B) Q3 units. C) Q4 units. D) Q5 units.
Economics
Under conditions of a liquidity trap and interest-insensitive investment, Keynesians would be most likely to propose __________ policy to eliminate a recessionary gap
A) expansionary fiscal B) contractionary fiscal C) expansionary monetary D) contractionary monetary
Economics