Borrowing is like:

A. buying the right to use your money for a time.
B. buying the right to use someone else's money.
C. selling the right to use your money for a time.
D. selling the right to use someone else's money.

Answer: B

Economics

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Explain how underground economic activity affects measurement of GDP

What will be an ideal response?

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The quantity theory of money predicts that in the ________, a 10 percent increase in the quantity of money leads to a 10 percent increase in ________

A) long run; real GDP B) short run; velocity C) long run; velocity D) long run; price level

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