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2 years ago

When the housing market collapsed in 2007, the demand for loanable funds decreased and caused interest rates to decrease.

1 answer:

4 0

It is False When the housing market collapsed in 2007, the demand for loanable funds decreased and caused interest rates to decrease.

Because Interest rates typically decline during recessions as loan demand slows, bond prices rise and the central bank eases monetary policy. During recent recessions, the Federal Reserve has cut short-term rates and eased credit access for municipal and corporate borrowers. No price in the economy is as important as the price of money. Interest rates arguably drive the business cycle of expansion and contraction.

Interest rate is the amount a lender charges a borrower and is a percentage of the principal the amount loaned.

Recession is a period when the business and industry of a country is not successful.

Corporate is formed into an association and endowed by law with the rights and liabilities of an individual.

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The "Four C's of Credit" are

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Credit, capacity, collateral, and capital

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3 years ago

Use the following compound interest formula to complete the problem. A = P (1 StartFraction r over n EndFraction) superscript n

Tatiana [17]

Credit cards are the card which is given by banks to the customers for withdrawing some amount beyond the account balance. The card I's is increased by $1579.3 than card H.

<h3 /><h3>What is a credit card?</h3>

A credit card refers to a payment mechanism that helps both consumer and commercial business proceedings, including purchases and cash advances.

Computation of credit card's balance:

<u>Amount of </u><u>Card H </u><u>after 3 years:</u>

Given,

Principal(P) = $1,186.44

Interest Rate(r) = 14.74%

Number of time period(n) = 3 years.

Applying the above values in the formula given in the question:

$\text{A} = \text{P}(1+ \dfrac{r}{n} )^n^t\\\\\\\text{A} =\$1,186.44(1+ \dfrac{14.74\%}{3} )^3\\\\\\\text{A}= \$1792.2$

<u>Amount of</u><u> Card I </u><u>after 3 years:</u>

Principal(P) = $1,522

Interest Rate(r) = 12.05%

A number of the time periods (n):

$12\text{Months}\times3\text{Years} = 36 \text{Months}$

Again, apply the above values in the formula given in the question:

$\text{A} = \text{P}(1+ \dfrac{r}{n} )^n^t\\\\\\\text{A} =\$1,522.16(1+ \dfrac{12.05\%}{12} )^3^6\\\\\\\text{A}= \$3,371.58$

Now we take the difference between both the credit cards, we have:

$\text{Amount of Credit Card I}-\text{Amount of Credit Card H}\\\\=\43,371.58-\$1,792.2\\\\=\$1,579.38$

Therefore, card H's balance is decreased by $1579.3 than a card I.

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3 years ago

Computers Inc. is a United States computer and consumer electronics company that designs and manufactures electronic devices. Co

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No the electronic devices where made to text and easier to text

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3 years ago

James wants to utilize his creativity in the advertising business. So, he plans to leave his shoe manufacturing business. He thi

brilliants [131]

Answer:

C. He can hire a new employee for a temporary replacement

Explanation:

because what if the other states are going to shut down the trade industry and you just shut down your shoe factory the whole city is going to be shoe less so i would say c and wait to find a worthy successor for his position in the shoe manufacturing business.

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3 years ago

What occurs when the cyclical unemployment rate is zero ?

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The economy is consider to be at full employment.

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