Interest rates: why are interest rates increasing on student loans or mortgages?

Q: rates affect business? Consumers?

A: Market interest rate plays extremely essential part in the business and customer spending in light…

Q: The table below shows the amount of savings and borrowing in a market for loans to purchase homes,…

A: At the equilibrium interest rate quantity demanded is equal to quantity supplied. It is clear from…

Q: Interest rates increase.

A: The market in which the aggregate demand curve and aggregate supply curve interact to determine the…

Q: Use the following graph to show the effects on the Market for Loanable Funds of many people deciding…

A: Savings is the source of supply of loanable funds. Higher the savings, higher is the supply of…

Q: Why is it difficult for Hong Kong to develop the smartwatches industry?

A: The watch industry has allready been developed in Hong kong but when we talk about smart watch…

Q: How are financial firms able to make profits?  Under what circumstances are their profits limited?

A: Financial companies profit from investing their funds in firms that have the potential to grow and…

Q: If government spending were increased, what would occur to interest rates

A: Government spending refers to the money spent by the government on things like health care,…

Q: The table below shows the amount of savings and borrowing in a market for loans to purchase homes,…

A: At Equilibrium Interest Rate, quantity demanded and quantity supplied is equal. At 7% rate of…

Q: to show the on the Market for Loanable Funds of many people deciding to play the lottery rather than…

A: If the people decides to play lottery rather than save money for investment then it leads to a fall…

Q: What is the difference between Market and Inflation-Free Interest Rates?

A: Market and inflation free interest rate are entirely different concepts. Market is the place that…

Q: What are the financial markets? What are the parties of the capital market?Explain it.

A: For the smooth operation of a capitalistic system, entrepreneurs and businesses rely on finance that…

Q: If mortgage rates rise from 5% to 10% but the expected rate of increase in housing prices prices…

A: Given the information: The rise in mortgage rates = 5% to 10% Rise in price of houses = 2% to 9%

Q: If the interest rate is 8%, how much households and firms will want to borrow?

A: The households and firms that want to borrow imply the demand for funds in the market. Thus we will…

Q: The cost of money is established and measured by an interest rate. True or false?

A: Answer - Cost of Money -  Cost of the money is amount of interest can be charged on the money…

Q: The supply of bonds comes from Select one: O A. Savers OB. Borrowers O C. Financial Intermediaries O…

A: A loan given by an investor to a borrower for a certain amount of time in exchange for consistent…

Q: Do the interest rates reflect the market interest rate?

A: An amount of money due per period as a proportion of the loan, deposit, or borrowing amount is…

Q: Predict how each of the following economic changes will affect the equilibrium price and quantity in…

A: Answering only the top three scenarios, as requested 1. When the number of people at the most common…

Q: High interest rates might purchasing a house, but at the same time high interest rates might -…

A: Interest rate is that percentage of the principal- amount borrowed or deposited, which the lender…

Q: The relationship between the price of the bond and the market rate of interest rate? * a. Inversely…

A: Par value of a bond is the amount you will get at the time of maturity of the bond The market price…

Q: Which of the following statements about adjustable-rate mortgages is TRUE? Interest rates can't…

A: A mortgage with an adjustable rate of interest. Based on changes in an index rate, the rate…

Q: Market interest rates are established by the banks or any financial institutions. True or false?

A: Answer -  Market Interest rate - It is the interest rate given on the deposits or other investments…

Q: If mortgage rates fell to 0 percent ("free money"), why might consumers still hesitate to borrow…

A: In general, the term mortgage rates refer to the interest rate charged by the financial institution…

Q: Distinguish between Market and Inflation-Free Interest Rates?

A: The Market interest Rate, also called the nominal interest rate (i) is the rate which is not…

Q: The withdrawal of income from circular flow of income example saving is known as _______

A: According to the given question The circular flow of income in an economy is a concept in the…

Q: what are the economic goals of a low-interest rate?

A: The presence of interest helps borrowers to spend money right away rather than waiting to save up…

Q: increase or decrease?

A: If reserve ratio is increased,money supply would decrease.

Q: Suppose the government borrows $20 million more next year than this year. How does the elasticity…

A: The behaviour of savers and borrowers is described by the loanable funds market. The market for…

Q: A number of articles published in the Wall Street Journal in the past year convince Americans to…

A: The articles published in the Wall Street Journal in the past year convince the Americans to save…

Q: Please answer d, e and f

A: Following the parts a, b, and c. I will be solving d, e, and f.

Q: The discount rate will never be equal to interest rate. True or False?

A: Discount rate is defined as the rate of interest which is charged to commercial banks and other…

Q: What is the relationship between the rising cost of living and low-income communities’ savings in…

A: The cost of living is referred as to the level of price or cost of purchasing goods and services.…

Q: Jack’s Lock and Key are considering remodeling. It estimates that the remodeling will cost $6,000…

A: Cost = $6,000 Revenue in 1st year = $3000 2nd year = $2500 Third year = $1500 i = 5%

Q: Using practical examples, explain the difference between transfer payments and government purchases.

A: Government purchases vs transfer payments

Q: what is high interest rates?

A: In an economy, interest rate is one of the economic term used at the marketplace when people make an…

Q: What is the relationship between interest rates and business investment?

A: To determine the relationship between interest rates and investments.

Q: . What is the amount of economic investment that has resulted from BBQ's actions? $ million . How…

A: Here the restaurant chain build 20 new restaurants.

Q: Several factors may influence interest rates for individual securities in an economy like the United…

A: Introduction There are many factors influencing the interest rate for individual securities. We all…

Q: many people think that the interest rate on a bond tells them all they need to know about how well…

A: The markets in a nation tend to operate upon the basis of the demand side factors, and the supply…

Q: The equilibrium price on the market for bonds is $900, and the equilibrium quantity is 1. million.…

A: Equilibrium price $900 Equilibrium quantity is 1.2 million. Current price is $960. Higher than the…

Q: Why junk food is

A: A demerit good is characterized as a good which can adversely affect the purchaser - however these…

Q: When financial analysts talk about “firm value” or “market value”, what views do they take? What are…

A: The value, or market capitalization, of an organization, is one piece of the organization's…