The Highest Interest Rates in the World Are Found in Countries

question 185

Multiple Choice

The highest interest rates in the world are found in countries

• A) that have followed a monetary policy that is highly restrictive.
• B) with governments that have run large budget surpluses.
• C) with governments that have run sizable budget deficits.
• D) that have followed an expansionary monetary policy that resulted in high rates of inflation.

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Definitions:

Increasing Opportunity Costs

The economic concept that as production of a good increases, the opportunity cost of producing an additional unit of that good also increases.

Production Possibilities Schedule

A graphical representation that shows the different combinations of two goods or services that can be produced within a given time period, provided that available resources and technology are static.

Consumer Goods

Goods that are produced for direct consumption by the end user.

Capital Goods

Long-term assets purchased by businesses to produce goods and services.