Answer:
The reason is that high rates of money growth actually lower interest rates.
Explanation:
During economic hardship, governments employ expansionary fiscal policy: this policy consists in the central bank (the Fed in the case of the U.S.) printing money to lower interest rates. The reason is that more money in the economy raises the availability of loanable funds, and this reduces in turn the interest rates that securities pay.
Government bonds, being the safest security, will have their interest rates reduce substantially during times of high money growth due to expansionary fiscal policy.
Answer:
$5,450.
Explanation:
Payment of Interest expenses = $15,000 * 3% = $450
Principal repayment = $5,000
Total cash payment on March 1, 2019 = $5,000 + $450 = $5,450.
Therefore, the amount of total cash payment that Mandy will make on March 1, 2019 is $5,450.
