Tonya, a small business owner is considering taking out a loan from Boomtown Bank to finance a new project. Last month, Boomtown Bank was offering a small-business special loan at 10.5% interest. But now, Boomtown Bank has decreased the interest rate on the small-business special to 10% interest. Is Tonya more or less likely to apply for the loan, compared to before the interest rate on the loan decreased? OMore likely OLess likely ONeither

Tonya, a small business owner is considering taking out a loan from Boomtown Bank to finance a new project. Last month, Boomtown Bank was offering a small-business special loan at 10.5% interest. But now, Boomtown Bank has decreased the interest rate on the small-business special to 10% interest. Is Tonya more or less likely to apply for the loan, compared to before the interest rate on the loan decreased? OMore likely OLess likely ONeither

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 5SCQ: Investors sometimes fear that a high-risk investment is especially likely to have low returns. Is...

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Young MBA Erica Cudahy can invest up to $20,000in stocks and loans. Each dollar invested in stocksyields $0.08 profit, and each dollar invested in a loanyields $0.13 profit. At least 40% of all money investedmust be in stocks, and at least $7000 must be in loans.Determine how Erica can maximize the profit earnedon her investments.
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