Respond to someone who says For every lender by Dr. Robert Murphy

Question 54 / 96: Respond to someone who says, "For every lender who grows rich, there must be a borrower who grows poor."

Answer:

This is wrong because it overlooks the possibility of "productive

borrowing." A business can borrow money by issuing bonds, for

example, and use the funds to invest in expanding its operations.

Although the business has to pay out interest on the loans, its

investment gives it higher revenues, so it can afford to do so and is

better off for having borrowed the money.

Sample Partial Credit Answer

That might be true in some cases but it isn't always true.

Sorry No Instant Evalutaion available for this question

<< First < Previous Flashcard Next > Last >> Test Home Page

https://www.jobilize.com/capitalism-the-market-economy-by-dr-robert-murphy-mises

Capitalism: The Market Economy

Access: Public Peer Review

Dr.Robert MurphyAssociated Scholar

Mises Institute

USA

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

Ask

	25 Toxicology Dr. Gustafson/Hamar quiz By Brooke Delaney Start Exam
	8 Sociology 08 Media and Technology MCQ By OpenStax Start Quiz
	Biology 302 Final By Dravida Mahadeo-J... Start Quiz
	Autonomic Nervous System By Marriyam Rana Start Quiz
	9 Domain Driven Design By JavaChamp Team Start Quiz
	Cultural Anthropology Definition By Richley Crapo Start Assignment
	14 AP 14 Brain Cranial Nerves Essay By OpenStax Start Flashcards
	10 AP 10 Muscle Tissue Essay Quiz By OpenStax Start Flashcards
	22 AP 22 Respiratory System MCQ By OpenStax Start Quiz
	Assembly Programming Language By JavaChamp Team Start Quiz

Copy and paste the following HTML code into your website or blog.