Homework Answers
Interest rate is the cost of capital. When some one borrows money has to pay interest and who lend the money get the interest income.
As interest rate decrease the cost of borrowing decreases and the benefit from lending decreases. As a result the borrower will benefited and lander will be worse off.
Answer:
●people who are borrowing money will benefit from this change.
Why others are not true ?
○No one benefits from this change: The borrower will be better off and lander will be worse off from this change
○people who are saving money will benefit from this change: No who are saving money will be get worse off.
○everyone benefits from this change: No who are landing money will be worse off
Note :the above arguments are holds ture when inflation is remain unchanged.
Add Answer to:
When interest rates decrease: no one benefits from this change. people who are saving money will...
When interest rates decrease: no one benefits from this change. people who are saving money will...
When interest rates decrease: no one benefits from this change. people who are saving money will benefit from this change. everyone benefits from this change. people who are borrowing money will benefit from this change.
Two countries decide to specialize in producing certain goods to export to other countries, and in...
Two countries decide to specialize in producing certain goods to export to other countries, and in return they import different goods from these other countries. The advantage of these exports and imports is: the country will be able to consume at a point outside your production possibilities frontier the countries will be able to produce and consume at a point outside your production possibilities frontier. the country will be able to produce at a point outside your production possibilities frontier....
Many people believe that high interest rates are bad for the economy. It is not widely...
Many people believe that high interest rates are bad for the economy. It is not widely known that some benefit from higher interest rates. Who benefits when rates go up? Why can higher interest rates indicate the something positive is happening in the economy? Please use examples to support your posting.
1. Which list contains only things that would make people want to hold more money? a. Interest rates decrease, the price level increases. b. Interest rates decrease, the price level decreases. c. Interest rates increase, the price le
1. Which list contains only things that would make people want to hold more money? a. Interest rates decrease, the price level increases.b. Interest rates decrease, the price level decreases.c. Interest rates increase, the price level increases.d. Interest rates increase, the price level decreases.
A higher tax rate on interest income provides an incentive for private saving, but a higher...
A higher tax rate on interest income provides an incentive for private saving, but a higher interest rate provides a disincentive for private saving Select one: True False People would desire to borrow more if the nominal rate of interest is 6 percent with a corresponding inflation rate of 2 percent than if the nominal rate of interest is 5 percent with a corresponding inflation rate of 3 percent. Select one: True False Mutual funds are one type of financial...
According to the theory of liquidity preference, interest rates should go up when there is a decrease in money supply.
True of False.c) According to the theory of liquidity preference, interest rates should go up when there is a decrease in money supply. d) Credit Cards are considered money because they are a medium of exchange. e) Gold is an example of fiat money.
1. Which of the following is true regarding spending and saving? a. Money that is spent...
1. Which of the following is true regarding spending and saving? a. Money that is spent cannot be saved. b. Spending is good for the economy; saving is bad for the economy. c. Spending money on items that are on sale is the same as saving money. d. Saving money and spending the same dollars has become easier with online banking. 2. If savers were to decrease the level of savings in an economy, what would happen in the loanable...
A. Interest rates will be unaffected. B. Interest rates will decrease. C Interest rates will increase....
A. Interest rates will be unaffected.
B.
Interest rates will decrease.
C
Interest rates will increase.
D
Interest rates could increase or decrease.
In December 2017, the Trump Administration and the U.S. Congress passed tax reform legislation, the 2017 Tax Cuts and Jobs Act, that cut corporate taxes from 35 percent to 21 percent. Consider the market for money illustrated in the figure below. Assume the market initially (just prior to the legislation) is in equilibrium at point A. What...
Please judge the statement: “a change in tax laws that encouraged greater saving would lower interest...
Please judge the statement: “a change in tax laws that encouraged greater saving would lower interest rates.” The answer is correct. But I wonder why. Doesn’t a high interest rate standard better motivate people to put their money in banks or financial assets? And these are all “savings”. Please explain. Thank you very much!
13. If the Fed conducts Open Market Purchase, then: a. price of bonds increase, interest rates decrease and money supply...
13. If the Fed conducts Open Market Purchase, then: a. price of bonds increase, interest rates decrease and money supply decreases. b. price of bonds decrease, interest rates increase and money supply decreases. c. price of bonds increase, interest rates decrease and money supply increases. d. price of bonds decrease, interest rates decrease and money supply increases.
When interest rates decrease: no one benefits from this change. people who are saving money will benefit from this change. everyone benefits from this change. people who are borrowing money will benefit from this change.
Two countries decide to specialize in producing certain goods to export to other countries, and in return they import different goods from these other countries. The advantage of these exports and imports is: the country will be able to consume at a point outside your production possibilities frontier the countries will be able to produce and consume at a point outside your production possibilities frontier. the country will be able to produce at a point outside your production possibilities frontier....
A. Interest rates will be unaffected.
B.
Interest rates will decrease.
C
Interest rates will increase.
D
Interest rates could increase or decrease.
In December 2017, the Trump Administration and the U.S. Congress passed tax reform legislation, the 2017 Tax Cuts and Jobs Act, that cut corporate taxes from 35 percent to 21 percent. Consider the market for money illustrated in the figure below. Assume the market initially (just prior to the legislation) is in equilibrium at point A. What...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago