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Hoochie [10]
8 months ago
12

with no inflation, a bank would be willing to lend a business firm $5 million at an annual interest rate of 6 percent. but if th

e rate of inflation was anticipated to be 6 percent, the bank would most likely charge the firm an annual interest rate of
Business
1 answer:
Alex8 months ago
3 0

Interest rate - A bank might want to loan a business structure 5000000 dollar at a n old financing cost of 6%.

What is interest rate?
A percentage of the principal, or the amount loaned, is what a lender charges a borrower as interest. The annual percentage rate, or APR, is the usual unit used to express the interest rate on the a loan (APR). The amount earned from a savings account as well as certificate of deposit at a credit union or bank may also be subject to interest rates (CD). Interest on these deposit accounts is calculated as an annual percentage yield (APY). The borrower is essentially charged interest for the use of the asset. Cash, consumer products, vehicles, and real estate are all examples of lent assets. An interest rate can therefore be viewed as the "cost of money" because it increases the cost of borrowing the very same amount of money.

Learn more about interest rate here:
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One significant contemporary management challenge is:_________
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Just what is globalization?

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7 0
1 year ago
Sam has contracted with dave to purchase dave's racing bike, with payment and delivery of the bicycle to be in 10 days. three da
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3 years ago
​As the income of bus riders increased, the wages of bus drivers increased simultaneously. How does this affect the market for b
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The demand curve and supply curve will shift leftwards.

Explanation:

The increase in the income of riders will decrease the number of bus rides because there is an inverse relationship between income and inferior goods. Therefore, the demand curve for bus rides will shift leftwards. Moreover, the increase in wages is an input cost, therefore, the rise in input cost will shift the supply curve leftwards.

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