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The government will lower them to decrease the portion of income allocated to mortgage repayments and allow people to spend more money at retail outlets, on holidays and other descretionary goods.
when money supply is increased, interest rates decrease
It can lead to negative effects on the economic activity and can even cause a recession.
Aren't we going through one right now
Predict what
Depends on how long were going to sit here and watch it happen and not do anything about it.
The US economy is in recession, as people have less money to spend. It is not yet a depression in which the entire ecomomy collapses, but it could still happen later on.
The government will lower them to decrease the portion of income allocated to mortgage repayments and allow people to spend more money at retail outlets, on holidays and other descretionary goods.
They will go up!
A recession happens .
They lost their jobs.
Of course it is! Depression can happen to anyone!
The Great Depression lasted from 1929-1939.
During the Great Depression 1932 was considered the worst year. and the year that FDR was elected. 1933 was sometimes considered as the great turn around or the beginning of the end.....if that makes sense
The stock market crash (1929) that began the Great Depression.
many lost their jobs, those who kept their jobs faced pay cuts and reduced hours
Yes