The greater is the risk of non-repayment of a loan, the
A) higher is the expected rate of interest.
B) longer is the expected time to repay the loan.
C) lower is the handling charges for the loan.
D) lower is the expected rate of interest.
Answer: A
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The market prices of existing bonds are
A) inversely related to the interest rate. B) stated in terms of the interest rate. C) not related to the interest rate. D) directly related to the interest rate.
Do macroeconomic issues concern the well-being of the typical individual member of an economy?
A) No, since we are focusing on the behavior of aggregate quantities. B) No, since most individuals have little contact with other economies in the world. C) Yes, since macroeconomic events have widespread effects on everyday lives. D) Yes, since macroeconomics focuses on the decisions constantly being made by the average individual.