The interest rate compensates
a. bankers for their time spent on paperwork
b. borrowers for their increased consumption today
c. savers for consumption forgone today
d. consumers for more consumption today
e. the Fed for its efforts to control the money supply
Question 2
If an established domestic industry is in jeopardy of being displaced by lower-priced imports, there could be a rationale for
a. permanent import restrictions to prevent the decline of the domestic industry
b. temporary import restrictions to allow the orderly adjustment of the domestic industry
c. permanent import restrictions based on the infant industry argument
d. temporary import restrictions based on the infant industry argument
e. temporary import restrictions that will be replaced by permanent tax breaks for the domestic industry
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