Which of the Following Statements Is True

question 21

Multiple Choice

Which of the following statements is true?

• A)Interest rates charged to well-known corporations are higher than rates charged to individuals because corporations can afford it.
• B)If people expect higher rates of inflation, the market interest rate will decrease because fewer people will borrow.
• C)Interest rates in unstable countries are lower than rates in stable countries.
• D)The risk cost of doing business in a high-crime area is greater and the cost of borrowing is, therefore, greater there.
• E)The lower the tax rate, the greater the cost of borrowing.

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Definitions:

Multiply

The operation of repeated addition of the same number.

Imaginary Unit

A mathematical concept, denoted as 'i', defined as the square root of -1 and used to extend the real numbers to complex numbers.

Standard Form

A way of writing numbers, particularly equations, in a specific and universally acknowledged structure, such as Ax + By = C for linear equations.

Imaginary Unit

A mathematical constant represented by \(i\), defined as the square root of -1, which is the basis for complex numbers.