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What is the significance of interest Rates for an economy?
the significance is that the government profit from specific interest rates in an economy
What is different about interest rates or price credit from other prices in the economy?
what is different about interest rates, or price of credit, from other prices in the economy
Why might rising interest rates depress stock prices?
rising interest rates usually means the economy has less
If the country is in a recession what will the government do to the interest rates to stimulate the economy?
lower
How do high interest rates affect the economy?
Higher interest rates have two main effects: 1) decrease demand for consumption, since the value of saving in the future is worth more than it was previously; 2) decrease the demand for money, since money's value is relatively less to assets which take interest into account. This means that higher interest rates decrease spending but also decrease inflation.
What is the significance of interest Rates for an economy?
the significance is that the government profit from specific interest rates in an economy
How interest rate affect the sa economy?
how interest rates affect the sa economy
What is different about interest rates or price credit from other prices in the economy?
what is different about interest rates, or price of credit, from other prices in the economy
Why might rising interest rates depress stock prices?
rising interest rates usually means the economy has less
If the country is in a recession what will the government do to the interest rates to stimulate the economy?
lower
How do high interest rates affect the economy?
Higher interest rates have two main effects: 1) decrease demand for consumption, since the value of saving in the future is worth more than it was previously; 2) decrease the demand for money, since money's value is relatively less to assets which take interest into account. This means that higher interest rates decrease spending but also decrease inflation.
How do changes in interest rates affect money supply?
When the interest rates are high, people would prefer to save than holding money. That means money supply in the economy is decreased. Whereas when the interest rates are low people prefer to hold money and spend, means increased money supply in the economy.
What will happen to Canadian interest rates?
Canadian interest rates may be lowered to encourage people to borrow more money and invest. Low interest rates can foster business activity if an economy is experiencing less productivity.
How does the money supply affect interest rates?
The money supply affects interest rates by influencing the supply and demand for money in the economy. When the money supply increases, there is more money available for lending, which can lower interest rates. Conversely, a decrease in the money supply can lead to higher interest rates as there is less money available for borrowing. Overall, changes in the money supply can impact interest rates by affecting the cost of borrowing and lending money in the economy.
Are the interest rates of a CD likely to go up in the next few months?
Yes, the interest rates will most likely go up due to the economy
What makes mortgage interest rates change?
Many factors determine mortgage interest rates. Most of it will depend on the economy and the glut or scarcity of houses that are available.
When a bondholder loses money because interest rates in the economy increase it is an example of what kind of risk?
interest rate
