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Short-Term Loans Generally Are Obtained Faster Than Long-Term Loans Because

question 135

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Short-term loans generally are obtained faster than long-term loans because when lenders consider long-term loans they insist on a more thorough evaluation of the borrower's financial health and because the loan agreement is more complex.


Definitions:

Wage Rate

The fixed amount of compensation or payment a worker receives from an employer in exchange for labor, typically measured per hour or piece of work done.

Diminishing Marginal Product

The decrease in the output of an additional unit of input when all other inputs are held constant beyond a certain point.

Marginal Product

The additional output gained from employing one more unit of a certain input, keeping all other inputs constant.

Labor Productivity

The measure of economic performance calculated by dividing the output by the number of labor hours used to produce it.

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