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Interest rates affect the value of money. Businesses depend on money. So when money has a higher value, businesses are happy. When money has a lower value, businesses are not so happy.
Interest rates affect the value of money. Businesses depend on money. So when money has a higher value, businesses are happy. When money has a lower value, businesses are not so happy.
Interst rates remove some of the profits that are made in businsses that make loans to opperate. Interest rates also make less money available to people that are paying of houses resulting in their not purchacing as much from businesses. this also flows on to renters of homes. the higher the rates the lower the economic activity.
High interest rates increase the cost on the ability to buy a house or a car.
how interest rates affect the sa economy
It cause interest rates to rise.
interest rates reflect the funding cost. for the the company the higher the rates the higher the borrowing cost.
When interest rates rise, bonds lose value; when interest rates fall, bonds become more attractive.
Interest rates significantly influence the business cycle by affecting borrowing costs for consumers and businesses. When interest rates are low, borrowing becomes cheaper, encouraging spending and investment, which can stimulate economic growth. Conversely, high interest rates can dampen borrowing and spending, leading to slower economic activity and potentially triggering a recession. Thus, central banks often adjust interest rates to manage economic fluctuations and promote stability.
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.
They both increase
explain how do intrest rates and inflation affect the real estate