Borrowers would be willing to pay a higher rate of interest

Assignment Help Macroeconomics
Reference no: EM1329592

Question about inflation and interest rates

Explain as carefully as you can why borrowers would be willing to pay a higher interest rate if they expected the inflation rate to increase in the future.

 

Reference no: EM1329592

Questions Cloud

Rights of american citizens : Discusses at least one case of significance related to three of the provisions of the First Amendment. Evaluate the rights and responsibilities that the Constitution gives an American citizen.
Build a java application that prompts a user for a full name : Write another Java application that accepts a user's password from the keyboard. When the entered password is less than six characters, more than 10 characters, or does not contain as a minimum one letter and one digit, prompt the user again.
What are characteristics of efficient agile supply chains : What are characteristics of efficient, responsive, risk-hedging, and agile supply chains? Can a supply chain be both efficient and responsive? Risk-hedging and agile? Why or why not?
Developing a television ad : What other things need to be considered when developing a television ad in order for it to be effective?
Borrowers would be willing to pay a higher rate of interest : Elucidate as carefully as you can why borrowers would be willing to pay a higher rate of interest.
Leadership and assessing qualities of good leaders : When looking at leadership, and assessing qualities of good leaders, how might this vary from the perspective of the person leading and the perspective of those working under the person doing the leading?
Find the average number of miles per gallon : design a class named Vehicle that acts as a superclass of vehicle types. The Vehicle class contains private variable fo rthe number of wheels and the average number of miles per gallon.
An argument supporting the importance of a strategic plan : Develop an argument supporting the importance of a strategic plan for the success of the defined business.
How do i set-up the problem : How do I set-up the problem and What formula, if any, should be used in this problem?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Describing the changes in slope of output demand

Determine, how the following will affect the slope of the output demand curve, and explain your results:

  Explanation about inflation and policies

Mention and explain the two types of inflation. Which sort of inflation would most likely be associated with the negative GDP?

  Cost of production in increasing cost industry

Suppose you own a home remodelling company. You are currently earning short-run profits. The home remodelling industry is an increasing-cost industry. In the long run, what do you expect will happen to

  Intermediate target variable of monetary policy

Explain the three criteria that are used to determine whether a particular variable is a worthy candidate to be selected as an intermediate target variable of monetary policy.

  Calculating money multiplier and nominal values of deposits

What is the value of the money multiplier? What is the value of the nomial money supply? What are the nominal values of deposits, currency and reserves?

  Find out an output which maximizes the total revenue

Find out an output which maximizes the total revenue. Calculate the price elasticity of demand at this output.

  State are you for or against free trade

State are you for or against free trade. Are you for or against NAFTA? What is the economic basis for trade

  Economists have estimated the subsiquent transportation

Economists have estimated the subsiquent transportation elasticities.

  Calculation and graphical representation of tfc

Explain how the locations of each of the four curves graphed in question 7b would be altered if (1) total fixed cost had been $100 rather than $60, and (2) total variable cost had been $10 less at each level of output.

  Economic statement related to pricing structure

Agree or disagree and describe: In monopolistically competitive market, firms that innovate successfully can increase their economic profits and lock in higher market shares over long run.

  Illustrate what is the amount of the producer

Illustrate what is the amount of the producer surplus for Juan Carlos combined.

  Describing tax on imports

A tariff is simply a tax on imports. Use our model of the excise tax (with diagram) to describe why domestic firms request that tariffs be imposed.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd