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Q: Should you buy bonds when interest rates are low?
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If Ted wants to buy a house and believes that interest rates will rise he should?

If Ted wants to buy a house and believes that interest rates will rise, he should apply for a fixed rate mortgage.


If the demand for money increases and the fed wants interest rates to remain unchanged what would be an appropriate policy?

Buy bonds in the open market


How is the current interest rate determined?

Many factors effect the interest rates. The Federal Reserve through the FOMC sets the discount rate. Market participants who buy and sell bonds also set the interest paid by such bonds and other fixed income instruments.


What are the interest rates on used cars?

The interest rates on used automobiles will vary depending on what dealership you purchase it from. If you buy from the actual owner, then there may not be any interest rate. You should ask about this as it is important.


What do liberty bonds buy?

Bonds are low interest loans to the Government


Can US citizens purchase Australian government bonds?

Their is a very easy way and a more difficulty way. 1.). Income-investment.net provides all kinds of global government bonds including Australia. They have good quotes and rates, blog, telephone, and instant message help. I liked there service and good rates. 2.) Anyone can buy Australian Government bonds. You can buy direct from the RBA (Reserve Bank of Australia) by filling out a form. Tax laws are about to be changed to remove interest withholding tax on government bonds, which will make it easier to get paid interest on these bonds. Check the related link for more information on how to buy Australian Government bonds.


How can interest rates influence AD?

reduce interest rates to increase incentive to buy/spend and hence increasing AD


How do interest rates affect people's purchasing decisions?

High interest rates increase the cost on the ability to buy a house or a car.


When interest rates are high the average consumer will?

buy less


How relatively high interest rates affect currency values?

What is important is not high interest rates but high real interest rates: that is, interest rates adjusted for inflation.If a currency has high real interest rates, foreign investors will want to buy into that currency. The increased demand will push up the price of that currency relative to other currencies and so its exchange rate will "improve".


What is there an increase in when consumers are more likely to be priced out of the option to buy a home?

Mortgage interest ratesMortgage interest rates.


Consumers are most likely to be priced out of the option to buy a home when there's an increase in what?

Mortgage interest ratesMortgage interest rates.