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Question 1: Which of the following statements about installment notes is NOT true?
Option A) The earlier payments will cover more interest expense than the later payments.
Option B) With each subsequent payment, a larger portion of the payment covers the principal of the note.
Option C) All payments are the same over the life of the note.
Option D) All of the above are true.
Option E) Depending on maturity dates, a portion of an installment note maybe classified as current and the rest as a long-term liability.
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
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