As Defined by Economists, Interest Is

question 165

Multiple Choice

As defined by economists, interest is

• A)only the amount earned by productive capital as a resource
• B)only the amount earned by land as a resource
• C)only the amount earned by lending money
• D)both the amount earned by productive capital as a resource and the amount earned by lending money
• E)both the amount earned by land as a resource and the amount earned by lending money

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Definitions:

Price Level

The general level of prices for goods and services in an economy.

Classical Theory

A broad framework in economics emphasizing free markets, competition, and the self-regulating nature of economies.

Interest Rate

An annual rate that represents the fraction of borrowed or invested money charged as a fee for its usage.

Equate

To consider one thing to be the same as or equivalent to another.