pinkowlb
contestada

*economics*
How do changes in the discount rate affect economic behavior?
A. Raising the discount rate makes individuals less likely to borrow
money
B. Lowering the discount rate encourages banks to keep more money
in reserve.
C. Raising the discount rate prevents investors from buying treasury
securities
D. Lowering the discount rate makes businesses less likely to hire
new employees

economics How do changes in the discount rate affect economic behavior A Raising the discount rate makes individuals less likely to borrow money B Lowering the class=

Respuesta :

Answer: A is the correct answer

Explanation:

A P E X

Martebi

The changes in the discount rate affect economic behavior is Raising the discount rate makes individuals less likely to borrow money.

  • A reduction in the discount rate makes it cheaper for commercial banks to borrow money, which can an increase in available credit and lending work throughout the economy.

The discount rate is simply known as the interest rate charged to commercial banks and other financial institutions for short-term loans.

  • The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Conclusively, The discount rate serves as an main point of the condition of credit in an economy.

Learn more from

https://brainly.com/question/3734263

Otras preguntas