Namen.D. Number: Chapter 16 or 29 Interest, Rent, & Profit: Pre-Class & In. Class Activities Packet Section: Part 2. Matching: Match the Key terms in Column "A" Wfth the definitions in Column "B" by writing the block (upper) case letter of your choice under column "A" and match the definitions in column "B" With the meanings or examples or real world applications in column "C" by writing the small (lower) case letter Of your choice under column "B" Column "A" I. Loanable Fund 2. Pose Rate Of Time Preference 3. Roundabout Production 4. Nominal Interest Real Interest Rate Present Value 7. Economic Rent 8. Pure Economic Rent Column "B" A The interest rate determined by the forces Of supply & demand in the loanable funds B Payment in excess Of opportunity costs. C. The current worth Of some future dollar amount Of income or receipts. D. The production Of capital goods that enhance productive capabilitia E Funds that sorzone borrows and another person lends, for Which he torrower pays an interest to the lender. F. A preference for the earlier over the later availability Of goods. The nominal interest rate agusted for expected inflation, that is, the nominal interest minus the expected infrtiM rate. H. A Of economic rent Where the payment to a factor that is fixed supply, implying that it has zero opportunity costs. Column "C" a. It also known as present discounted value The current value Of expected income stream or cash flows at a given rate Of return. b. The *yment for a supply Of like land or art work by a deceased artist which cannot be increased or used for any Other purpose. C. The percentage increase in the purchasing *Wer that tie receives when the borrower repays the ban with hterest Examples TIPS (Treasury Infationprotected Security In addition to a fixed rate Of *yrnent, TIPS also pays Irwestors inflation adjusted principal amount at maturity) & I-Bonds (Saving Bonds") iss'*d by the IJ S. Treasury pay hterest payment, that is, adjusted for inflation WiCe a year. d. The prccess whereby machinery and equipment are produced fist and then with the help Of these machinery and equipment, the desired consumer (finished) goods are produced. e. It is the interest rate in arrent dollars on bans or deposits on newspapers or web by banks and Other depository institutions It is equal to; interestrate + Expeded inflation rate f. The supply Of %vings by savers and banks make such kind Of funds availabk to the general public . The difference between the Etual payment for a factor and its 3pected payrnent_ For example, the difference between Efficiency wage and Minimum or living If the minimum or living wage is S? 25,'hror S1025hr and a company pays S15Whr as efficiency for a worker (ie, the difference is S800,'hror $5/hr respectively) h. The inclination Of the consurTEr towards current consumption Wer the future consumption