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the discount rate moved up from a low of 3 percent in May 1994 to 6 percent in January 2001 to counter possible overheating and inflation from the robust economic growth since the mid-1990s

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What is a cyclical stock?

A cyclical stock is a stock that follows business patterns in regards to advances and declines of the overall economy.


Can cyclical unemployment ever have a negative impact on the economy?

Yes, cyclical unemployment can have a negative impact on the economy by reducing consumer spending, lowering overall economic output, and potentially leading to a recession.


A headline states real GDP falls again as the economy slumps This condition is most likely to produce what type of unemployment?

cyclical


How do the different types of unemployment affect the economy?

There are 5 different types of unemployment: Frictional, Seasonal, Cyclical, Hardcore (or longterm) and Structural. The only type of unemployment that can be fixed or conrolled is Cyclical unemployment, due to fluctuations or recession in the business cyle. Cyclical unemployment causes employers to cut down workers, due to cost cuttings because there is a recession. Everything else is natural.


What the difference between discount rate and prime rate?

The discount rate is the interest rate charged by central banks to commercial banks for short-term loans, influencing overall monetary policy and liquidity in the economy. In contrast, the prime rate is the interest rate that commercial banks charge their most creditworthy customers, typically large corporations, for loans. While the discount rate is set by central banks, the prime rate is influenced by the central bank's policies and market conditions, often moving in tandem with changes in the discount rate.

Related Questions

What is a cyclical stock?

A cyclical stock is a stock that follows business patterns in regards to advances and declines of the overall economy.


Can cyclical unemployment ever have a negative impact on the economy?

Yes, cyclical unemployment can have a negative impact on the economy by reducing consumer spending, lowering overall economic output, and potentially leading to a recession.


Which kind of unemployment occurs only when the economy has a recessionary gap?

Cyclical !


What is a cyclical unemployment?

Cyclical Unemployment results from business recessions that occur when aggregate (total) demand is insufficient to create full employment.Cyclical Unemployment is due to contractions in the economy


The absence of cyclical unemployment is evidence that?

the economy is operating at full employment. Cyclical unemployment refers to the fluctuations in unemployment that are caused by economic downturns or recessions. When there is no cyclical unemployment, it suggests that the economy is in a state of stable growth and there are enough job opportunities available for those seeking employment.


How does cyclical unemployment hurt the economy?

Cyclical unemployment is the result of a boom and bust economy. When industry is good businesses expand and hire more people and then when the economy drops and the businesses close there is a dramatic rise in unemployment.


What is it called when the economy is producing less than capacity?

A cyclical downturn, a bust, a recession: it depends on how serious it is and how long it lasts.


A headline states real GDP falls again as the economy slumps This condition is most likely to produce what type of unemployment?

cyclical


What should have the government have done to to help the economy during an economic downfall?

Nothing, the economy is cyclical. It goes up and down naturally. By spending a ton of money on "Stimulus" Packages to "fix" the economy they increased the national debt and decreased the overall well being on the US economy.


How do the different types of unemployment affect the economy?

There are 5 different types of unemployment: Frictional, Seasonal, Cyclical, Hardcore (or longterm) and Structural. The only type of unemployment that can be fixed or conrolled is Cyclical unemployment, due to fluctuations or recession in the business cyle. Cyclical unemployment causes employers to cut down workers, due to cost cuttings because there is a recession. Everything else is natural.


How much discount available to senior citizens travelling by nonstop flight from delhi to New York by economy class?

how much discount in air fare is admissible to seniorcitizens travelling in economy class by nonstop air india flight from delhi to newyork?


Are discount plane tickets safe?

Yes, discount plane tickets are the same coach or economy tickets as regularly priced tickets. Many discount tickets have travel date restrictions, reservation change fees and are generally non-refundable.