When interest rates decrease: no one benefits from this change. people who are saving money will...

Question

Question

When interest rates decrease: no one benefits from this change. people who are saving money will benefit from this change. ev

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Option 4

Explanation: Borrowers of money need to pay interest to the lender. When thete is a fall in the interest rate, borrowers need to pay lower interest.

Add a comment

Answer 2

Similar Homework Help Questions

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...
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.

At higher interest rates,____ of holding money is high -transaction costs -opportunity costs -benefits

At higher interest rates,____ of holding money is high -transaction costs -opportunity costs -benefits

When interest rates decrease: no one benefits from this change. people who are saving money will...

Homework Answers