If a bank makes a 30-ycar loan to a borrower at a 4.5 percent fixed rate of inte

Question

If a bank makes a 30-ycar loan to a borrower at a 4.5 percent fixed rate of interest, and the rate of in i averages 6.0 over that 30-year period, the bank's real rate of interest would be: 1.5 percent -1.5 percent 0 percent 5. A progressive income tax structure helps to slow the decline in aggregate demand during a recession because: the tax burden on firms and households rises as their incomes drop. the tax burden on firms and households falls as their incomes drop. the tax burden on firms doesn't change much as their incomes drop. the tax burden on firms and households is unpredictable as their incomes drop. The national debt is equal to: public debt not held by foreigners. all prior business debt. The sum of all prior years' deficits and surpluses all prior household deficits and surpluses. consumer debt in the nation. Which best describes the incentives what expected inflation provides to in Sellers will want to accept the offer from the lowest bidder. economy? Sellers will sell less now and wait until prices stabilize before making more Dutch. Sellers will wait for the offer from the highest bidder chases. Sellers will wait until prices fall before selling again.

Explanation / Answer

4)
Real rates=nominal rate-inflation rate
=4.5-6
=-1.5
Ans is B

5)
Ans is B
A progressive tax structure is one in which an individual or family's tax liability as a fraction of income rises with income.

6)
Ans is C
The sum of all previously incurred annual federal deficits. Since the deficits are financed by government borrowing, national debt is equal to all government debt outstanding.

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.