The Real Interest Rate Is ________ in Australia Compared to Zimbabwe

question 102

Multiple Choice

The real interest rate is ________ in Australia compared to Zimbabwe because ________.

• A)lower; there is a lower risk premium in Australia.
• B)lower; Australia is a net borrower.
• C)higher; Zimbabwe is a net borrower.
• D)higher; more firms want to borrow financial capital in Australia.

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Definitions:

Blu-ray Players

Electronic devices designed to play Blu-ray discs, which are capable of storing high-definition video and data.

Demand

The desire to own something and the ability to pay for it at a specific price.

Supply

The total amount of a product or service that is available for purchase at any given price level in a market.

Samsung

A multinational conglomerate corporation based in South Korea, known for its electronics, appliances, and technology products.