Suppose you are in charge of your company’s financial department and you have to decide whether to

1. Prompt:

Suppose you are in charge of your company’s financial department and you have to decide whether to borrow short or long term. Checking the news, you realize that the government is about to engage in a major infrastructure plan in the near future.

Requirements: Predict what will happen to interest rates. Will you advise borrowing short or long-term? Please also explain and support your argument using the text and at least one journal article.


The Economics of Money, Banking, and Financial Markets text Part 2: Financial Markets Introduction

Part 2.4: The Meaning of Interest Rates Part 2.5: The Behavior of Interest Rates

Deuteronomy 23:19-20; Leviticus 25:35-38; Leviticus 25:35-37; Deuteronomy 15:7-11; Deuteronomy 15:1-6

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