What is meant by the rate of interest. How is the rate of interest determined? Explain in 500 words.

Q: What would be the value of consumption if savings is $1300 and the value of Income is $2200

A: The data presented in the question above is:- Savings = $1300 Income = $2200 Consumption is to be…

Q: If you are a banker, should you consider the nominal or real interest rate when deciding which rate…

A: Nominal Interest rates :  It refers to that cost of capital which a borrower has to pay and a lender…

Q: Discuss the relationship between nominal and effective interest rates?

A: Macroeconomics is a part of economics that deals with production, decision and allocation concerning…

Q: What is the nominal interest rate?

A: The nominal interest rate is an interest rate which does not take inflation into the account and is…

Q: A friend asks you to explain the difference between saving and investment. Explain the difference.

A: The individuals and households earn income from various sources which is then used by them for…

Q: After grauating with a BBA in Economics, Dwight is considering going to college to get a Ph. D. in…

A: Explicit cost is the cost which is actually incurred by the firm, during production. The firm adds…

Q: Calculate the value of income if consumption is $2000 and savings is $1200

A: The Given information is as follows:- Consumption expenditure = $2000 Savings expenditure = $1200 We…

Q: Explain how higher savings leads to a higher standard of living.

A: The savings is the money that people keep with them without spending for their consumption purpose.…

Q: I buy a car for $25,000. I $550 monthly. pay The loon is 5 years. What is the interest rate A он…

A: FV = 25,000 Monthly Payment = 550,  Time = 5 Years

Q: Which of the following is an example of federal agency regulations that impact business operations?

A: An IRS audit is a review/examination of a company's or individual's accounts and financial…

Q: Can a borrower become a saver?

A: The borrower can become a saver which is explained through the intertemporal budget constraint. The…

Q: Explain how a nominal interest rate of 100% can actually be a low rate.

A: Interest rates are the cost of borrowing and saving money and are stated as a percentage of the…

Q: What is the importance of saving?

A: Saving money refers to the act of setting aside a portion of your income or earnings for future use.…

Q: all else equal, what does a lower interest rate mean for firms? what does a lower interest rate…

A: Interest rate positively related with the savings and negatively related with the investment. When…

Q: How is a firm's net income important?

A: Net income is earned by the company or individual after deducting expenses and taxes. It is also…

Q: Is rate of retur the same as interest rate?

A: The difference between interest rate and rate of return is mainly based on the nature. Rate of…

Q: Calculate the value of APS if savings is $990 and income is $2100

A: The information we have is as follows:- Savings = $990 Income = $2100 We have to calculate the value…

Q: What is true about equilibrium in the market for loanable funds?   A.   Savings = gross domestic…

A: Market equilibrium of any things whether goods Markets or money market or Loanable funds market the…

Q: Jevonte is saving money. Jevonte started with $21 and added $17.50 every week. Find the rate of…

A: You can escape life's uncertainties by saving money, which also gives you the chance to live a…

Q: Draw a graph depicting interest rates at the quantity of loanable funds. Answer the following…

A: Market for loanable funds studies the behavior of interest rate and quantity of loanable funds with…

Q: What is the difference between Interest Accrued and Interest Expense?   Can you give me a simple…

A: Accrued refers to something which has happened but is not paid for yet.

Q: What would be the value of consumption if savings is $1300 and the value of Income is $2200.

A: Given data: Saving is $1300 Income is %2200