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Q: How do interest rate influence economic activity?
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Related questions

What the role of interest rate in economic and what the good and bad effect of interest rate.?

what's effect on plabmid when gene of interest large size


What is a variable interest rate?

An interest rate that changes based on economic factors, such as T-Bills, LIBOR, and the prime rate published in the Wall Street Journal.


What is variable interest rate?

An interest rate that changes based on economic factors, such as T-Bills, LIBOR, and the prime rate published in the Wall Street Journal.


What is the rate of Risk-Free interest?

Risk-free interest is the rate of interest which exists when the expected risk of the economic transaction is zero. In most cases, the general interest rates in major banks of a country reflects the nominal interest rate, which is risk free. The real interest rate is simply the nominal interest rate minus the rate of inflation.


What factors that influence money supply?

inflation ,deflation, interest rate


What is economic meltdown?

It is the going down on the rate of economic activity of a country. It basically refers to increase in borrowings by government.


How does the interest rate on new debt influence the use of financial leverage?

The higher the interest rate on new debt, the less attractive financial leverage is to the firm


Policies reducing levels of economic activity?

contractionary fiscal policy: reducing government expenditure and increasing taxation rate. Contractionary monetary policy: decreasing money supply and increasing interest rates.


Which of the following economic indicators measures inactivity rather than activity?

Unemployment rate


What is sub-prime rate of interest?

It is one kind of interest rate lower than themarket interest rate for a target group. This type of interest rate was used in USA house mortgage loan to capture all the lower income people. This is the one significant cause of present economic crisis.


How the Federal Reserve can influence the federal funds interest rate?

If the Fed wants to raise the federal funds interest rate, it will sell securities to remove reserves from the banking system.


Which economic indicators measure inactivity rather than activity?

The unemployment rate is one indicator that measures inactivity rather than activity.