The Rate of Interest That People Will Be Willing to Pay

question 25

Multiple Choice

The rate of interest that people will be willing to pay:

• A)is independent of their personal rate of time preference (impatience).
• B)will increase as they come to assign more importance to distant events relative to events in the near future.
• C)depends primarily upon their present plans for consumption.
• D)will be higher the more attractive are the current opportunities they perceive relative to future opportunities.

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Definitions:

Planning

This is the process of setting objectives, defining strategies, and outlining tasks and schedules to accomplish the goals of a business or project.

Science

The systematic study of the structure and behavior of the physical and natural world through observation and experiment.

Social Responsibility

The obligation of organizations to act in ways that benefit society at large, beyond their own financial interests and legal requirements.

Pyramid

A geometric structure with a square or triangular base and sloping sides that meet at an apex, or more broadly, a system or organization structured in hierarchical layers.