1 - The "prime rate" is very often offered to themost creditworthy borrowers and a"sub-prime rate" is usually offeredtohigh risk borrowers. 2- A "Goldilocks Economy" suggests an economygrowing...

1. The prime rate is the rate of interest that the banks charge to their most creditworthy corporate customers. It is reserved for only the most qualified customers, those who pose the least amount of risk. On the other hand, sub -prime rates are charged to the borrowers who do not qualify for prime rates. Subprime borrowers generally have low credit ratings or are people who are perceived of as likely to default on a loan. Sub-prime rates are higher than prime rates and varies.
2. The term was created by David Shulman, senior economist of the UCLA Anderson Forecast, who termed the Clinton administration as "The Goldilocks Economy: Keeping the Bears at Bay” , where the economy was hot enough to spur profitable business growth but cool enough to keep the Fed from using contractionary monetary policy to ward off inflation. That means higher interest rates, which stock traders and businesses dislike because of their negative impact on profit margins. The term includes a clever pun since the term "bears" describes stock traders who believe the market is declining or entering a bear market.
3. The law of demand states that all things constant( ceteris paribus), the quantity demanded of a good increases when the price of the good decreases and vice versa. The demand curve represents the demand for a product at every price. For example, the price of a candy bar is $2 and the quantity demanded...