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Q: What would happen in the market for loanable funds if the government were to increase the tax on interest income?
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What factors will contribute to the riskiness of these bonds?

Assuming that these bonds are just like any bonds, the biggest risk associated with investing in bonds is interest rates falling. Another risk is that the issuer will default on the bond. This generally does not happen with government bonds. Interest rates are the biggest contributor to risk in investing in bonds.


What happens if interest rate of bond is decrease?

Well... that would happen when the 'Market' looses confidence in itself but NOT on the government. Lower bond rate would basically mean that government can borrow easily ( some times gain, after adjusting for inflation) while in general it would be difficult to for the "market" to do so.


If you pay just a portion of the credit card bill what will happen?

The credit card will add interest on your unpaid balance which will increase your total credit card debt. If the company cashes your check, nothing will happen. Except what is mentioned above. They often accept partial payments. If they don't take partial payments they will return your check & demand a full payment Different companies have different rules. You should contact them to find out exactly. They probably WON'T take a partial payment without charging you interest.


Request to stop interest rate charge to your credit card?

Before the credit card companies were able to increase the rates with or with out notification, but now they have to notify if any increase rate or annual fee, within 45 days notification. When this happen, a simple call to the credit card companies to opt out from the fees or increase of the APR will work. Check what are the cons with the credit card companies, since they can rise the minimum payment or make it harder to pay, also read their notices for any restrictions or considerations


What is the abbreviation for interest rate in North America?

NAI = North America Interest rate It took me a while to realise that NAI was NOT 'nope', so I post to help those happen to have same 'impression' as I had.

Related questions

What would happen to the economy if the Government lowered interest rates?

Governments decreases interest rates so that, when interest rates are lowered, borrowings will be more cheaper, which would encourage investors borrow more money. This would increase investments in an economy, which would thereby increase production, demand for labor and thereby the average salary, which consequently leads to economic growth.


What would happen to a monthly payment if the interest rate increased?

Either the monthly payment would have to increase or the period of the loan.


What would happen if the U.S. Federal Reserve Bank were to increase the legal reserve ratio?

You would expect higer interest rates, a contracted GDP and depreciation of the dollar


If the US government does not allow oil to be imported from other countries what will happen if demand in the US stays the same?

The price of oil will increase as the supply decreases.


What will happen to yield to maturity when market yield increase?

increase


What will happen when you increase the temperature?

The pressure or volume of a quantity must increase.


Did the government know what was going to happen on 9 11?

No. Had the government known what was going to happen, the government would have prevented it from happening.


If interest rates rise what will happen to the value of the dollar?

When US interest rates rise the dollar appreciates or rises in value. Because our interest rates are increasing, other countries are buying our capital which causes the demand from US dollars to increase and increases the exchange rate, meaning it takes more of another currency to buy an American dollar.


What will happen if you increase the mass of an object what will the potential energy do?

If you increase the mass of an object, the potential energy will increase.


If the worlds resources were to magically increase 100 fold what would happen?

If all the world's resources were to magically increase 100 fold what would happen?


What would happen if the length of wire increase what happens to the capacitance?

capacitance also increase


What will happen when consumer incomes increase?

The prices of the goods will likely increase as well due to it.