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Effect of interest rate on consumer finance?
how would a balloon payment effect interest on a loan
business risk
business risk
Increase in principal + interest payment.
decrease it
If the federal reserve sells $40,000 in treasury bonds to a bank with 5% interest the immediate effect on the money supply is an decrease of $40,000.
The interest rates will decrease since there are more available funds for the bank to loan.
Decrease of ozone in the stratosphere could cause UV to enter the surface. These could cause skin cancer and the immune system to weak.
The effect of compound interest is that interest is earned on the accrued interest, as well as the principal amount.
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Effect of interest rate on consumer finance?
There will be a decrease in price and quantity.
decrease -
The crowding-out effect limits investment in the private sector. The crowding-out effect occurs when the government runs a deficit and must borrow money from the loanable funds market. By borrowing money, they decrease the amount of savings available in the market and the real interest rate rises. The increase in the real interest rate lowers investment by businesses.
An increase in the money supply shifts the money supply curve to the right. If you look on your graph, you will see that an increase in money supply will cause the interest rate to decrease. Here's why: Fed increases money supply-->excess supply of money at the current interest rate -->people buy bonds to get rid of their excess money-->increase in the prices of bonds --> decrease in the interest rate.
i think Gross profit Will decrease