The Primary Function of Interest Rates Is to

question 1

Multiple Choice

The primary function of interest rates is to

• A) determine the demand for labor.
• B) allocate the supply of loanable funds.
• C) compute the rate of profit.
• D) serve as a price for fixed inputs such as land.
• E) serve as a reward for uncompensated risk.

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Definitions:

Geert Hofstede

A Dutch social psychologist known for his work on the comparison of cultures across nations, particularly for developing the cultural dimensions theory.

Intercultural Competence

The ability to communicate sensitively with people from other cultures and countries, based on an understanding of cultural differences.

Cross-cultural Reliability

The extent to which the findings or measurements of a study can be applied or are consistent across different cultures or cultural contexts.

Personal Space

The distance someone wants between him- or herself and other people in ordinary, nonintimate interchanges.