All of the Following Accurately Describe Microlending EXCEPT

question 24

Multiple Choice

All of the following accurately describe microlending EXCEPT:

• A)it involves small loans
• B)lending is primarily undertaken by the government
• C)the borrowers are people who are attempting to start or expand a small business
• D)many economists think it has aided economic growth in many low-income countries

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Definitions:

Sacrifice Ratio

A measure of the economic cost associated with reducing inflation, often calculated as the percentage loss in output per percentage point decrease in inflation.

Inflation Expectations

The anticipation by consumers and businesses of the rate at which prices will rise in the future.

Phillips Curve

An economic theory suggesting an inverse relationship between the rate of inflation and the rate of unemployment within an economy.

Money Supply

Money supply is the total amount of monetary assets available in an economy at a specific time.