The expected real cost of using a unit of capital over a given period of time is known as ________.
A) the real rate of interest
B) the nominal rate of interest
C) depreciation
D) the user cost of capital
Question 2
Which of the following statement is untrue?
A) assets equal liabilities plus net worth
B) households and firms are lenders and borrowers in the flow of funds
C) government regulation is the major cause of asymmetric information problems
D) pension funds and insurance companies are financial intermediaries
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The expected value for a binomial probability distribution is _____.