In general, when there is less competition in the banking sector ( a lower supply of firms), nominal interests rates decrease, which makes it easier for business owners to obtain a loan. inflation decreases, which is better for the economy as a whole. nominal interest rates increase, which is good for businesses. nominal interest rates increase, making it more difficult for business owners to obtain loans, which is bad for the economy as a whole.

It can be defined as a raw percentage by which the value of money will grow in the market in a given…

Answered: In general, when there is less…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In general, when there is less competition in the banking sector ( a lower supply of firms),

		nominal interests rates decrease, which makes it easier for business owners to obtain a loan.
		inflation decreases, which is better for the economy as a whole.
		nominal interest rates increase, which is good for businesses.
		nominal interest rates increase, making it more difficult for business owners to obtain loans, which is bad for the economy as a whole.

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