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According to a BBC article, President Robert Mugabe of Zimbabwe had opposition leaders arrested after police broke up a banned political rally on March 11, 2007 ( http://news.bbc.co.uk/2/hi/africa/6457329.stm) . The opposition leader Morgan Tsvangirai appeared in court two days later with "a badly bruised face and stitches in a head wound." The U.S. government, among others, was considering sanctions in response to Mugabe's actions. According to the British Foreign Office minister, Lord David Triesman, "Zimbabwe's government had committed 'actions . . . bordering on crimes against humanity.' Lord Triesman pointed to the government's suppression of Mr. Tsvangirai's Movement for Democratic Change and the eviction of hundreds of thousands of people from urban areas in 2005." The article also notes, "More than 80% of Zimbabweans are living in poverty, with chronic unemployment and inflation running at more than 1,700%-the highest in the world." Which of the following systems would provide incentives for the type of behavior described in this article?
Interest Expense
The cost incurred by an entity for borrowed funds over a period.
Interest Paid
The amount of money paid over a specific time period for the use of borrowed funds.
Premium
The amount by which the price of a financial instrument or security, like an insurance policy, bond, or stock, exceeds its face value or nominal value.
Straight-Line Method
A technique for determining depreciation or amortization by uniformly spreading an asset's cost throughout its lifespan.
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