jimjimbaroo4092 jimjimbaroo4092
  • 08-02-2022
  • Business
contestada

The market interest rate increased by 2.0%. Did the amount of capital borrowed increase or decrease?

Respuesta :

ewomazinoade ewomazinoade
  • 16-02-2022

If the market interest rate increases, the capital borrowed decreases.

What is the market interest rate?

Market interest rate is the cost of borrowing capital from lenders. If the market interest rate increases, it indicates an increase in the general price levels (inflation). As a result the real value of the money borrowed would decline. The lender loses and the borrower gains.

To learn more about interest, please check: https://brainly.com/question/26367706

Answer Link

Otras preguntas

Write an algebraic expression for 15 decreased by twice a number
Describe three main features inside a prokaryotic cell.
Write an algebraic expression for the product of 33 and j
How can sudden events affect earth?
Write an algebraic expression for the product of 33 and j
Which substance—wood or steel—is the better conductor? A conductor is a material that requires very little heat energy to experience a change in temperature. Ex
How can sudden events affect earth?
A sound wave travels at 330 m/sec and has a wavelength of 2 meters. Calculate its frequency and period.
The border states that remained in the Union were (A) Ohio, Indiana, and Illinois (B) Tennessee (C) Kentucky and Missouri (D) Delaware, Maryland, Kentucky and M
Which of the following types of algae would be predominantly green in color? a. chlorophyta b. chrysophyta c. phaeophtya d. rhodophyta