2) The price paid for the rental of borrowed funds (usually expressed as a percentage of the rental of 2) $100 per year) is commonly referred to as the A) aggregate price level. C) interest rate. B) inflation rate. D) exchange rate.

C) interest rate

Explanation:

Based on the scenario being described within the question it can be said that this price is commonly referred to as the interest rate. Like mentioned, this is the principal that is charged by the lender of the money to the borrower for the use of the borrowed money. This is usually charged as a percentage of the total amount that is being borrowed.

C) interest rate. 

Explanation:

Interest rate is price paid for the rental of borrowed funds. It is usually expressed in percentage. A 2% interest on a $100 dollar loan means that the price paid would be (0.2×$100=$2).

Exchange rate is the rate at which one currency is exchanged for another currency.

Inflation rate is the rate at which general price level rises.

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