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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 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.
How can the Federal Reserve effectively target a higher interest rate?
The Federal Reserve can effectively target a higher interest rate by adjusting the federal funds rate, which influences borrowing costs for banks and ultimately affects interest rates for consumers and businesses. By increasing the federal funds rate, the Fed can encourage higher interest rates in the broader economy.
What are some financial variables that affect the price earnings ratio?
interest rate
What is the difference between the interest rate and discount rate, and how do they impact the overall cost of borrowing?
The interest rate is the percentage charged by a lender on a loan, while the discount rate is the rate at which the Federal Reserve lends money to banks. The interest rate directly affects the cost of borrowing for individuals and businesses, as it determines the amount of interest paid on the loan. The discount rate, on the other hand, influences the overall economy by affecting the cost of borrowing for banks, which can impact the availability of credit and interest rates for consumers.
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
What is a comparison rate and why is it handy for consumers?
A comparison rate in Australia must be quoted by lenders who offer home loans and personal loans. The comparison rate is handy for consumers because it allows consumers to see the total "real" interest rate as it must include fees and other charges that would not normally be included within an interest rate.
What is the highest interest rate allowed by law for consumers in the state of Ohio?
29%
What is the average interest rate?
As of July 2014, the national average interest rate is 5.159. However, this will change as months go by. The interest rate changes often.
What is the national average right now for mortgage interest rates?
The national average for a 30 year fixed mortgage rate is 4.89%. This rate can either increase or decrease depending on the loan ammount. As of March 6, 2010, the national average mortgage interest rate for a 30 year fixed rate loan is 5.31%. The national average mortgage interest rate for a 15 year fixed rate loan is 4.68%.
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.
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 does an adjustable rate mortgage work and what factors can affect the interest rate adjustments?
An adjustable rate mortgage (ARM) is a type of home loan where the interest rate can change periodically based on market conditions. Factors that can affect the interest rate adjustments include the index rate, the margin set by the lender, and any caps or limits on how much the rate can change.
How do these corner fincnce companies get away with charging consumers outrageous interest rates?
If people don't agree with the interest rate, they do not have to accept the loan.
What is the definition of Prime Lending Rate?
Prime Rate or Prime Lending Rate is a term applied in countries to reference an interest rate used by banks. In the past, the term indicated the rate of interest at which banks lent to favored agents (those with good credit), however, this is not always the case. Many interest rates are expressed as a percentage above or below Prime Lending Rate.
What agency sets the interest rate on loans?
The agency responsible for setting interest rates on loans is the Federal Reserve Board. The interest rate on loans is tied into the rate of inflation and the GNP or Gross National Product.
