Ch 4 Level of Interest Rates State whether you agree or disa

(Ch. 4 Level of Interest Rates) State whether you agree or disagree with the following statement: “Implementing structural reforms that make it easier and less costly to open a business and in general foster a more business-friendly climate in a given country is likely to put upward pressure on real interest rates in the country in the short run, all else equal”. Explain your answer.

Explain why real estate professionals are called brokers, while car sales entities are considered dealers (rather than brokers).

(Maximum 3 sentences, )

Solution

Real estate professionals are called brokers because they trade on behalf of others whereas the white car sales entities are called dealers because they trade on their own behalf. Real estate professionals buy and sell according to their clents wish whereas the car dealers buy and sell the cars according to them only.