Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Interest rates charged to well-known corporations are higher than rates charged to individuals because corporations can afford it.
B) If people expect higher rates of inflation, the market interest rate will decrease because fewer people will borrow.
C) Interest rates in unstable countries are lower than rates in stable countries.
D) The risk cost of doing business in a high-crime area is greater and the cost of borrowing is, therefore, greater there.
E) The lower the tax rate, the greater the cost of borrowing.