Suppose That You Lend $1,000 to a Friend and He

question 73

Multiple Choice

Suppose that you lend $1,000 to a friend and he or she pays you back one year later. What is the opportunity cost of lending the money?

• A)There is no cost.
• B)The real interest rate that would have been earned on the money.
• C)The nominal interest rate that would have been earned on the money.
• D)The implicit cost of the money.

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Definitions:

Better Health

A condition of improved physical, mental, and social well-being, often achieved through healthy lifestyles, preventive medicines, and medical interventions.

Being Bored

The state of feeling disinterested and unengaged with one's surroundings or activities, often leading to a sense of frustration and restlessness.

General Mental Ability

An overall capacity to think abstractly, reason, plan, and solve problems, often considered synonymous with intelligence.

Stated Intentions

The declared or expressed purposes or goals of an individual or group, often used to predict future actions.