Question

Explain whether the following statement is true, false, or uncertain. Be explicit about your assumptions. Support...

Explain whether the following statement is true, false, or uncertain. Be explicit about your assumptions. Support your answer by a graph. ”If a person is a lender and the interest rate rises, he or she will remain a lender.”

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Correct Answer:

True

Explanation:

When interest rate increases, then more money comes to the economy for investments and real value of the money, increases. It puts a lender to be in a favourable position, because real value of money repaid by the borrowers, will be more than the real value of money given to them by the lender. So, there is an increased level of benefit to the lender. Further, real interest rate will also increase with the increase in interest rate. Hence, the given statement is true.

(There is a no need of the diagram for this question)

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain whether the given statement is true, false or uncertain. Start your answer by selecting one...
Explain whether the given statement is true, false or uncertain. Start your answer by selecting one of the options – “True”, “False” or “Uncertain” and then provide arguments to justify your selection (be brief and concise and present your arguments in 100 or less words). You need to ensure your assumptions are clear, reasonable and explicit if making any. Question: The saving rate (gross domestic saving as a % of GDP) in Singapore, a small open economy, was 48% in...
True, False or uncertain?  Explain whether each of the following statement is true, false or uncertain. Start...
True, False or uncertain?  Explain whether each of the following statement is true, false or uncertain. Start your answer by selecting one of the three statements – “True”, “False” and “Uncertain” and then provide arguments to justify your selection (be brief and concise in less than 100 words). You need to make assumption clear, reasonable and explicit if making any. a. Nominal interest rates are always higher than real interest rates. Answer b. If the lockdown measure due to a further...
Explain whether the given statement is true, false or uncertain. Start your answer by selecting one...
Explain whether the given statement is true, false or uncertain. Start your answer by selecting one of the options – “True”, “False” or “Uncertain” and then provide arguments to justify your selection (be brief and concise and present your arguments in 100 or less words). You need to ensure your assumptions are clear, reasonable and explicit if making any. Question: Workers and employers in economy expected 3% inflation rate for 2015 but actual inflation turns out to be 5%. Kylie,...
State whether the following statement is True, False, or Uncertain. Be sure to explain your answer....
State whether the following statement is True, False, or Uncertain. Be sure to explain your answer. In the basic market-clearing model, a permanent parallel upward shift in the production function causes aggregate output to increase, the interest rate to rise, and the real demand for money to fall.
Question 1: True, False or uncertain (16 marks) Explain whether each of the following statement is...
Question 1: True, False or uncertain Explain whether each of the following statement is true, false or uncertain. Start your answer by selecting one of the three statements – “True”, “False” and “Uncertain” and then provide arguments to justify your selection (be brief and concise in less than 100 words). You need to make assumption clear, reasonable and explicit if making any. The quality and logic of arguments determine your marks. (4 marks each) The price of cars produced in...
Question 1: True, False or uncertain (16 marks) Explain whether each of the following statement is...
Question 1: True, False or uncertain Explain whether each of the following statement is true, false or uncertain. Start your answer by selecting one of the three statements – “True”, “False” and “Uncertain” and then provide arguments to justify your selection (be brief and concise in less than 100 words). You need to make assumption clear, reasonable and explicit if making any. The quality and logic of arguments determine your marks. (4 marks each) If the lockdown measure due to...
Say whether you think the statement is true, false, or uncertain; and support your answer in...
Say whether you think the statement is true, false, or uncertain; and support your answer in a few lines. 1. Consider two similar economies hit by the same temporary negative supply shock. In the economy with the more credible monetary policy, there will be smaller increases in both inflation and the real interest rate. 2. If the public believes the commitment to a nominal anchor to be credible, the effect of a negative aggregate demand shock is for short-run aggregate...
Determine whether the following statement is TRUE, FALSE or UNCERTAIN. Explain your answer carefully using a...
Determine whether the following statement is TRUE, FALSE or UNCERTAIN. Explain your answer carefully using a supply and demand diagram. The score for this exercise will be based on the quality of your explanation. “If a price is not an equilibrium price, there is a tendency for price to move to its equilibrium level. Regardless of whether the price is too high or too low to begin with, the adjustment process will increase the quantity of the good traded.”
Explain whether the following statements are true, false, or uncertain.
Explain whether the following statements are true, false, or uncertain.a. “An increase in the number of employed workers always means a reduction in the unemployment rate.”b. “An increase in the unemployment rate always means a decrease in the economy’s participation rate.”
Please answer true / false / uncertain to the statement and EXPLAIN THE ANSWER. RDD and...
Please answer true / false / uncertain to the statement and EXPLAIN THE ANSWER. RDD and Diff-in-Diff could give different estimates of a causal effect, even when applied to the exact same data for the exact same purpose and their assumptions are valid.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT