• Card 69 / 100: Why does a low interest rate give a "green light" to long production processes?

    Answer:
    Entrepreneurs must buy inputs first, then sell the output later. The lower the interest rate, the more valuable the future revenue from customers will appear in today's calculations. Therefore, a given process with fixed dollar payments for inputs in the beginning, and a fixed dollar payment by customers at the end, will appear more profitable as the interest rate gets lower and lower.

  • Keyboard Shortcuts

    Previous Card ← Previous Card Button
    Next Card → Next Card Button
    Flip Card Space-Bar
<< First < Previous Next > Last >>

Get Jobilize Job Search Mobile App in your pocket Now!

Get it on Google Play Download on the App Store Now
Interactive Question Test Home Page
https://www.jobilize.com/capitalism-the-market-economy-by-dr-robert-murphy-mises

Capitalism: The Market Economy

Access: Public Peer Review

Attribution:  Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY
Flash Cards plugin by Curtis Blackwell github.com/curtisblackwell/flash_cards
Google Play and the Google Play logo are trademarks of Google Inc.
Ask
Anonymous User
Start Quiz
Yasser Ibrahim
Start Quiz
Copy and paste the following HTML code into your website or blog.
<iframe src="https://www.jobilize.com/embed/capitalism-the-market-economy-by-dr-robert-murphy-mises" width="600" height="600" frameborder="0" marginwidth="0" marginheight="0" scrolling="yes" style="border:1px solid #CCC; border-width:1px 1px 0; margin-bottom:5px" allowfullscreen webkitallowfullscreen mozallowfullscreen> </iframe>