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.
Economics
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Suppose the inflation rate target is "0" and the long run federal funds target is also "0." If the federal funds rate set using the Taylor rule is 2% and output is above trend output by 1%, the inflation rate is ________
A) 3% B) 2.5% C) 1% D) -0.5%
Economics
Advocates of cutting taxes rather than increasing government expenditures in response to a recession argue that the increase in spending by consumers and business may be more effective than that of the government. Explain this argument
Economics