Final answer:
To calculate the expected average prime interest rate for the upcoming year based on a survey of economists, their individual rate predictions are required to compute an average.
Step-by-step explanation:
The student inquires about predicting the average prime interest rate for the upcoming year, based on the given survey of economists. To determine this, one would typically need the data from the survey, which is not provided in the question. Generally, the expected average prime interest rate can be calculated by averaging the rates predicted by the panel of economists. Without the specific predictions, we cannot compute an exact answer.
Additionally, the concept of the prime rate is defined as the rate that banks charge their most creditworthy customers. The prime interest rate is influenced by the Federal Reserve's interest rates and is usually a few percentage points higher. When the Fed's rate is low, the prime rate is likewise lower, benefiting borrowers. Conversely, when the Fed's rate rises, the prime rate also increases, which tends to be more favorable for lenders. The prime rate depends on the Federal Reserve's interest rates and typically favors borrowers when low and lenders when high