The administration costs of a loan as a proportion of the total cost of the loan typically
a. decrease as the size of the loan increases. Therefore, the larger the loan, other things constant, the lower the interest rate
b. decrease as the size of the loan increases. Therefore, the larger the loan, other things constant, the higher the interest rate
c. increase as the size of the loan increases. Therefore, the larger the loan, other things constant, the lower the interest rate
d. increase as the size of the loan increases. Therefore, the larger the loan, other things constant, the higher the interest rate
e. increase as the size of the loan increases, but this has no impact on the interest rates charged for large loans compared to small loans
A
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If G = T, then regardless of whether there is unemployment or inflation (or both), the budget is
a. balanced even though the economy may not be in equilibrium b. in deficit c. in surplus d. contractionary e. balanced and the economy is in equilibrium
When the productivity of capital decreases, _____
a. the demand curve for capital shifts to the right b. the price of the good in which capital is used as a resource increases c. the supply curve for capital shifts to the left d. the equilibrium rental rate of capital decreases