A consumer, who is initially a lender, remains a lender even after a decline in interest rates.
Question:
A consumer, who is initially a lender, remains a lender even after a decline in interest rates. Is this consumer better off or worse off after the change in interest rates? If the consumer becomes a borrower after the change is he better off or worse off?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 56% (16 reviews)
In order to remain a lender after the change in interest rates the consumer must be choosing a poin...View the full answer
Answered By
Anurag Agrawal
I am a highly enthusiastic person who likes to explain concepts in simplified language. Be it in my job role as a manager of 4 people or when I used to take classes for specially able kids at our university. I did this continuously for 3 years and my god, that was so fulfilling. Sometimes I've skipped my own classes just to teach these kids and help them get their fair share of opportunities, which they would have missed out on. This was the key driver for me during that time. But since I've joined my job I wasn't able to make time for my passion of teaching due to hectic schedules. But now I've made a commitment to teach for at least an hour a day.
I am highly proficient in school level math and science and reasonably good for college level. In addition to this I am especially interested in courses related to finance and economics. In quest to learn I recently gave the CFA level 1 in Dec 19, hopefully I'll clear it. Finger's crossed :)
4.80+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Suppose that the government introduces a tax on interest earnings. That is, borrowers face a real interest rate of r before and after the tax is introduced, but lenders receive an interest rate of (1...
-
In what way could the international flow of funds cause a decline in interest rates?
-
a. Boca asks you to assess its exposure to interest rate risk. Describe how Boca will be affected by rising interest rates and by a decline in interest rates. b. Given the information about the yield...
-
On January 1, 2011, Devco acquired cum div. all the shares of Brooke, at which date the equity and liability sections of Brookes statement of financial position showed the following balances: Share...
-
This case describes a small company that has grown large enough to need a full-time HR person. You have been selected to be the HR Manager, and you have to decide what HR activities are needed and...
-
Use the given figure, translation vectors v and w, and reflection lines l and m to construct the indicated glide reflections. Show the figure in the positions before and after the glide reflection....
-
List and describe the three most common criteria by which to evaluate different resource allocation priority rules. LO6
-
A researcher plans to conduct an experiment evaluating the effect of a treatment. A sample of n = 9 participants is selected and each person receives the treatment before being tested on a...
-
Pixel Studio, Inc., is a small company that creates computer-generated animations for films and television. Much of the company's work consists of short commercials for television, but the company...
-
Verify that the points (0, 2) and (3, 0) lie on the line 2x + 3y = 6 Hence find the slope of this line. Is the line uphill, downhill or horizontal?
-
Suppose asset A can be sold for $11 next period. If assets similar to A are paying a rate of return of 10%, what must be asset As current price?
-
What is the present value of $100 one year from now if the interest rate is 10%? What is the present value if the interest rate is 5%?
-
Rodney Whitaker earns $116,904 annually and is paid monthly. How much Social Security tax will be deducted from his December earnings? How much Medicare tax will be deducted from his December...
-
Sravani Bought an audio CD containing 1 0 0 audio files , 1 0 of which are by S . P . Balasubrahmanyam . Assume the shuffle option is enabled to play the songs in random order. What is the...
-
Kroger Co. is one of the largest retail food companies in the United States as measured by total annual sales. The Kroger Co. operates supermarkets, convenience stores, and manufactures and processes...
-
time complexity of the following algorithm forn-1 to n-1 do for je +1 to n do Print & for Kn-3 to n+4 do print k
-
There are various compounds and epoxies that have been used to "final bed" rifle stocks. In your opinion, which is the best and why? Does this depend on the material of the stock? If so, why? Conduct...
-
Taylor Series: Problem 3 Previous Problem Problem List Next Problem 8 (5 points) Write the Taylor series for f(x) = x about x = 2 as C, (x 2)". Find the first five coefficients. n=0 - Co= C1= C2= C3=...
-
Budget projections show the debt-to-GDP ratio of the U.S. government topping its World War II high before too long. What problems does that pose?
-
Doorharmony Company makes doorbells. It has a weighted- average cost of capital of 5% and total assets of $ 5,900,000. Doorharmony has current liabilities of $ 750,000. Its operating income for the...
-
Consider the following possible schemes for taxing a monopoly: i. A proportional tax on profits ii. A tax on each unit produced iii. A proportional tax on the gap between price and marginal cost a....
-
Bruce runs the only bar in town. An individual consumers demand for bar drinks is Q = 8 P. The associated marginal revenue curve for this consumer is MR = 8 2Q. The bars marginal cost is $2 per...
-
Because of the huge fixed cost of running pipes to everyones home, natural gas is a natural monopoly. Suppose demand is Q = 100 P and marginal revenue is MR = 100 2Q. Suppose marginal cost is $20,...
-
This is a partial adjusted trial batance of Cullumber Compary manualys
-
Which of the following journal entries will record the payment of a $1,500 salaries payable originally incurred for Salaries Expense? Select one: A. Debit Salaries Expense; credit Salaries Payable B....
-
What is the definition of substantially appreciated inventory? A. Inventory with a FMV greater than its basis B. Inventory and unrealized receivables with a FMV greater than their basis C. Inventory...
Study smarter with the SolutionInn App