Interest rates represent
A) allocational forces
B) penalties for early consumption
C) rewards for deferring consumption
D) all of the above

Name: Interest rates represent A) allocational forces B) penalties for early consumption C) rewards for deferring consumption D) all of the above
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Question

Quizplus · Accepted Answer

Interest rates serve multiple purposes: they allocate resources by influencing borrowing and lending, act as penalties for consuming resources early, and provide rewards for saving or deferring consumption.

Interest Rates Represent