Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 16 - Rent, Interest, and Profit - Discussion Questions: 5

Answer

The answer is below.

Work Step by Step

This is essentially the interest rate where the supply and demand curve for money intersect. In other words, if a lot of people want money, the interest rate will be higher, while if a lot of people want to lend money, it will be lower in general. It is important to note, however, that the US government exerts a large amount of control over the interest rates.
Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.