9. One the four most fundamental factors that affect the cost of money as discus
ID: 2736158 • Letter: 9
Question
9. One the four most fundamental factors that affect the cost of money as discussed in of the text is the time preference for consumption. The higher the time preference, the lower the cost of money, other things held constant. a. True b. False 10. The four most fundamental factors that affect the cost of money are (1) production opportunities, (2) time preferences for consumption, (3) risk, and (4) inflation. a. True b. False The four most fundamental factors that affect the cost of money are productio 1. opportunities, (2) time preferences for consumption, (3) risk, and (4) weather conditions. a. True b. False 2. The four most fundamental factors that affect the cost of money are (1) produ opportunities, (2) time preferences for consumption, (3) risk, and (4) the skill economy's labor force. a. True b. FalseExplanation / Answer
9)
If the time preference increases cost of money will also increase and vice-versa. There is a direct relationship with cost of money and preference for usage. If the investor was very highly desirous to use his money at earliest, he will have high required rate than others.
Hence, given statement is False.
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