Question

QUESTION 6 The higher a higher, lower O b. lower, lower the nominal interest rate. st of processing a loan, the the interest rate charged for the loan; the lawer the expected inflation rate, the O c. lower, higher o d higher, higher QUESTION 7 If you place $10,000 in a savings account that pays 3 percent interest per year and you leave all the money, principal plus interest earned, in the account for three years, approximately how much money will you have at the end of the three years? Oa $10,927 o b. $10.124 c. $9,152 ed $10.090 e.$11,120 QUESTION 8 If medical research were to find that grain consumption lowers human life expectancy, agricultural land rents would e a not be affected. O b. decrease. O C. increase in the short run and decrease in the long run O d. increase QUESTION 9 sult of ttor oudabout methods of production If the dermand Tor ive f time preference in society O b.a lower rate O c.a lower interest rate. da higher interest rate. a e.a and c

Answer 1

Q6) option D)

Higher loan processing costs, so need to have higher interest rate to cover these costs, thus higher is nominal interest rate

7) option A)

Maturity amount = 10,000(1+.03)³

= 10927.27

8) option B)

Since grain Consumption will fall, so production will fall

Thus land rents will fall

9) option E)

As demand for loans rises , it's due to fall in interest rate

Also new production methods are available,so now funds are needed