This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Assume you borrow 1,000 on credit cards at an annual interest rate of 10 percent. If the inflation ... (Read 82 times)

bobthebuilder

  • Hero Member
  • *****
  • Posts: 567
on: Jun 30, 2018
Assume you borrow 1,000 on credit cards at an annual interest rate of 10 percent. If the inflation rate is 12 percent during the year and the debt has to be paid back in 12 months, then:
 a. income will be redistributed from you to the bank.
  b. the real return for the bank will be greater than initially expected.
  c. you will repay the bank with fewer dollars than you borrowed.
  d. the dollars repaid will have less purchasing power than those borrowed.
  e. the bank will obtain the same return on the loan as initially expected.

Question 2

Which of the following forces us to choose among alternatives?
 a. Value
 b. Scarcity
 c. Rarity
 d. Market mechanism


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Swizqar

  • Sr. Member
  • ****
  • Posts: 357
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

b


bobthebuilder

  • Member
  • Posts: 567
Reply 2 on: Jun 30, 2018
Thanks for the timely response, appreciate it

6ana001

  • Member
  • Posts: 311
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

More than one-third of adult Americans are obese. Diseases that kill the largest number of people annually, such as heart disease, cancer, diabetes, stroke, and hypertension, can be attributed to diet.

Did you know?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
Top Ten States Ranked by Rate or Reported Bacterial STI Cases in 2011 Top Ten States Ranked by Rate or Reported Bacterial STI Cases in 2011
Static Stability & Environmental Lapse Rate Static Stability & Environmental Lapse Rate
The rate of facilitated diffusion The rate of facilitated diffusion
Saving Rate by Decile of Income per Capita Saving Rate by Decile of Income per Capita
Belief that premarital sex is “not wrong at all,” Canada, 1975—2016 (in percent) Belief that premarital sex is “not wrong at all,” Canada, 1975—2016 (in percent)
Video: Transferring genes into plants Animation

For a complete list of videos, visit our video library