Us interest rates during the credit crisis

Reference no: EM131225841

U.S. Interest Rates during the Credit Crisis:

During the credit crisis, U.S. interest rates were extremely low, which enabled businesses to borrow at a low cost.

Holding other factors constant, this should result in a higher number of feasible projects, which should encourage businesses to borrow more money and expand. Yet many businesses that had access to loanable funds were unwilling to borrow during the credit crisis.

What other factor changed during this period that more than offset the potentially favorable effect of the low interest rates on project feasibility, thereby discouraging businesses from expanding?

Reference no: EM131225841

Questions Cloud

What are the goals of the organization : Research the organizational structure of the United Nations Human Rights Council. What are the goals of the organization? How is it structured to accomplish those goals? Discuss if it is accomplishing those goals and, if it is not accomplishing th..

Overreaching laws and regulations do not facilitate : Using these articles as an initial starting point, what do you think about the debate and what is your position? Why do you believe your position is sustainable or defensible?

Multifactor productivity will be-loaves-dollar : Charles Lackey operates a bakery in Idaho? Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 45?% in the last year. On far too many occasions, customers have not been able to purchase the bread of their ch..

Determine the required diameter : A steel wire 30 ft long, hanging vertically, supports a load of 500 lb. Neglecting the weight of the wire, determine the required diameter if the stress is not to exceed 20 ksi and the total elongation is not to exceed 0.20 in. Assume E = 29 × 106..

Us interest rates during the credit crisis : What other factor changed during this period that more than offset the potentially favorable effect of the low interest rates on project feasibility, thereby discouraging businesses from expanding?

Write on the improvement in areas within your organization : Write on the improvement in areas within your organization (or another organization) that can be made in these four areas listed. The paper may utilize personal opinion and anecdotal examples, but should also include research-supported evidence o..

Do people will be take advantage of these preventive service : Based on all the information you are able to recover and your review, what are the three (3) overall conclusions you have drawn about the Preventive Services Covered under the Affordable Care Act?

Personal philosophy for promoting the career of women : Discuss your personal philosophy for promoting the career of women in managers within an organization. Why do you hold this philosophy? Explain any challenges that you foresee in implanting this philosophy within a modern organization. How will you o..

Establishing your own free-standing service : Imagine that you are a credentialed, licensed professional, and that you are considering going independent and establishing your own free-standing service (perhaps an urgent care center, a physical therapy service, a private laboratory, or other s..

User Account

All Pages