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Which of the following is not one of the four fundamental factors affecting the cost of money? Production opportunities Time preferences for consumption Risk Local
- Which of the following is not one of the four fundamental factors affecting the cost of money?
- Production opportunities
- Time preferences for consumption
- Risk
- Local government taxes
- Risk represents the probability that an investment will generate a low or negative return in a financial market (TRUE/FALSE)?_____________________
- Inflation tends to push the prices of goods and services downward (TRUE/FALSE)?
- Suppose your friend chooses to spend $4,500 out of her current income of $10,000 and save the rest with a bank hoping to earn interest. The interest rate your friend can hope to earn from the bank will depend on which of the following?
- Savers time preferences for current versus future consumption
- The expected future rate of inflation
- A and B above
- B above only
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