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Why interest rate has no affect on the aggregate demand?
The interest rate does affect aggregate demand. As the interest rate falls, aggregate demand increases and vice-versa.
How interest rate affect the sa economy?
how interest rates affect the sa economy
Does your credit score affect the interest rate when you apply for home financing?
Your credit score can possibly affect your interest rate when you apply for home financing. If you have a low credit score, you are considered a higher risk to the bank, and therefore, they may raise your interest rate.
How interest rate affect households?
If your interest is high then the money remain with you will be low to support your need. On the contrary you will be left with more money if the interest rate is low.
What are some financial variables that affect the price earnings ratio?
interest rate
What is the primary factor that will affect how much is earned in a saving account?
The interest rate.
How interest rate affect the value of us dollar?
its actually the other way around. the value of the us dollar effects interest rates. the lower the us dollar is worth, the lower the interest rate
How simple interest and compound interest affect investment exercises?
Compound interest gives you more, but at a low interest rate (less than 10%), the difference is negligible.
How does inflation affect interest rates?
if an interest rate is high, it is likely that inflation is also high. Generally, one doesn't affect the other so much as measure the other.
How does interest rates affect people?
Interest rates affect the value of holding assets compared to the value of holding money (since putting your money in an investment or a bank account is the opportunity cost to holding it as money). When interest rates increase, it is more profitable to save money than before, so the savings rate (the rate at which people save money at) increases and consumption decreases. Additionally, the interest rate also affects the net present value of the capital stock, wages, and other inputs in production, so production changes with the interest rate. Therefore, the interest rates can affect consumption and production.
How does the federal reserve reducing the interest rate affect the bond market?
The cost of borrowing money.^%
How does a FICO score of 672 affect being accepted for home loans?
It affects your interest rate.
