1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
adell [148]
3 years ago
6

Gabriela took out a five-year fixed-rate loan from a bank so that she could purchase a car. Over the life of the loan, the infla

tion rate was much higher than anticipated. Gabriela took out a five-year fixed-rate loan from a bank so that she could purchase a car. Over the life of the loan, the inflation rate was much higher than anticipated. How did inflation affect Gabriela or the bank?did inflation affect Gabriela or the bank? Inflation benefited the bank because the money Gabriela repaid the loan with was worth more than expected. Inflation benefited the bank because interest rates on fixed-rate loans rise at the same rate as the inflation rate. Inflation benefited Gabriela because she repaid the loan with money that was worth less than expected. Inflation benefited Gabriela because interest rates on fixed-rate loans are lowered when inflation rates rise.
Business
2 answers:
Firlakuza [10]3 years ago
6 0

Answer:

Inflation benefited Gabriela because she repaid the loan with money that was worth less than expected.

Explanation:

Inflation rate measures the overall increase in the CPI. The CPI is the consumer price index that measures the average price of a basket of goods compared to the price of the same basket of goods during a base year.

As the inflation rate rises, the purchasing power of the currency lowers, therefore the currency is worth less. For example, if you could buy 10 t-shirts with $100 during 2018, and the inflation rate for 2019 was 10%, you will be able to buy only  9 t-shirts with $100. That means that the inflation has decreased the real value of the currency.

Marianna [84]3 years ago
4 0

Answer: The answer is: "Inflation benefited Gabriela because she repaid the loan with money that was worth less than expected." I took the test. I hope this helps!

You might be interested in
Most economists believe that prices are:
BaLLatris [955]

Answer: Most economist believe that prices are flexible in the long run but many are sticky in the short run.

Explanation:

Prices are sticky in the short run because producers and buyers take time to adapt to new situations. If there is a shortage of butter, lets say, the economic theory says that the prices will rise because there is less butter ( ceteris paribus = all the other factors remain constant). Actually, buyers and suppliers need time to adapt to the new situation. However, in the long run buyers and suppliers have time to adapt to new situations so prices become more flexible.

8 0
3 years ago
The largest type of municipal bonds outstanding is ________. Group of answer choices revenue bonds industrial development bonds
Ierofanga [76]

Answer:

revenue bonds

Explanation:

A revenue bond is a Municipal bond used to fund projects that yield income and are secured through a particular source of revenue.

Characteristics of revenue bond.

1. It takes long time to maturity.

2. It yields more returns than the general obligation bond.

The purpose of a revenue bond is so that government can finance projects that generates income such as toll roads, airports, seaports, electricity projects, water projects etc.

6 0
3 years ago
Read 2 more answers
Why did Milan say that he does not like to interview potential employees?
Aneli [31]
It’s the second one,about not being able to see someone’s work-ethic
8 0
2 years ago
What is business of business
Pepsi [2]

Answer:

just a business

Explanation:

cuz business can help you in the future...

3 0
2 years ago
How do you finance hotel stays and what's the the growth schedule?​
alexgriva [62]

Answer:

I finance hotel stays through savings.

Explanation:

Every person has different sources of income. It is dependent on the person how he uses his income. If he saves some amount of money he can spend that money on the vacations. This is great source of getting relaxed and the person will feel refreshed again. The hotel stays can be funded through savings and other incomes.

3 0
3 years ago
Other questions:
  • At the present time, Perpetualcold Refrigeration Company (PRC) has 10-year noncallable bonds with a face value of $1,000 that ar
    14·1 answer
  • Herbert spencer believed that societies evolve from lower to higher forms because as generations pass, the most capable and inte
    13·2 answers
  • Which commercial lodging type is located on or near u.s. installations, is operated by a commercial lodging company, and is corp
    12·1 answer
  • Which of these postsecondary degrees comes after a master's degree (going from lowest to highest)? A. High school diploma B. Ass
    13·2 answers
  • The Network Time Protocol service can be used to synchronize computer clocks. Explain why, even with this service, no guaranteed
    14·1 answer
  • Abby Mia wants to know how much must be deposited in her local bank today so that she will receive yearly payments of $18,000 fo
    7·1 answer
  • Latona Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, the ledge
    10·1 answer
  • The management accountant's responsibility under the Institute of Management Accountants (IMA) Statement of Ethical Professional
    15·1 answer
  • How can technology affect the international business?​
    14·1 answer
  • Peace and prosperity will flourish if we can find the one best way to divide existing resources among nations.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!