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

Chapter22: Inflation

Section: Chapter Questions

Problem 10SCQ: A fixed-rate mortgage has the same interest rate over the life of the loan, whether the mortgage is...

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