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Vera_Pavlovna [14]
1 year ago
8

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

Business
1 answer:
o-na [289]1 year ago
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.

To know  more about the Interest Rate here

brainly.com/question/13324776

#SPJ4

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The journal entry for the purchase of inventory on account using the perpetual inventory system is:.
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The journal entry for the inventory purchased will be to record the sale and another one to record the cost of the sale.

<h3>What is a journal entry?</h3>

It should be noted that a journal entry is used to record the financial activities of a company.

In this case, the journal entry for the purchase of inventory on account using the perpetual inventory system is to record the sale and another one to record the cost of the good.

Learn more about inventory on:

brainly.com/question/24868116

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