To help offset the costs from loan defaults, the First National Bank of Gotham decides to increase the interest rate it charges on its business loans
As a result of this increase in the interest rate, the creditworthiness of Gotham's loan applicants is likely to A) improve.
B) deteriorate.
C) be unchanged.
D) be unchanged, unless the economy enters a recession at the same time as the interest rate is increased.
B
Economics
You might also like to view...
If society were to maximize the utility of its worst-off member, the final allocation would most likely be
A) relatively egalitarian. B) on the contract curve. C) Pareto-efficient. D) one in which one person gets everything.
Economics
Using the above table, at a price of $5 there will be a
A) shortage of 20 units. B) shortage of 10 units. C) surplus of 20 units. D) surplus of 10 units.
Economics