0
What is different about interest rates or price credit from other prices in the economy?
Wiki User
∙ 15y ago
what is different about interest rates, or price of credit, from other prices in the economy
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
Why might rising interest rates depress stock prices?
rising interest rates usually means the economy has less
Why does the Federal Reserve alter monetary policy?
The Federal Reserve alters monetary policy to influence the amount of money and credit in the U.S. economy. These changes affect interest rates and the performance of the economy. The end goals of monetary policy are sustainable economic growth, full employment and stable prices.
What are the five features of your market economy?
There are five features that describe market economy. They are freedom of choice, motive of self-interest, competition, system of market and prices and limited government.
How do falling interest rates and falling prices influence total demand in the economy?
When interest rates fall, money costs less to borrow. If prices fall, goods are easier to purchase. If consumer confidence is good, people and businesses may be tempted to borrow to buy goods at low prices. Low prices and low interest rates are often the result of poor consumer confidence as business need to lower prices to stimulate demand.
Who determines prices in a market economy?
in a market economy.. the prices are decided by demand and supply....or compention
Why might rising interest rates depress stock prices?
rising interest rates usually means the economy has less
Why does the Federal Reserve alter monetary policy?
The Federal Reserve alters monetary policy to influence the amount of money and credit in the U.S. economy. These changes affect interest rates and the performance of the economy. The end goals of monetary policy are sustainable economic growth, full employment and stable prices.
What are the five features of your market economy?
There are five features that describe market economy. They are freedom of choice, motive of self-interest, competition, system of market and prices and limited government.
How do falling interest rates and falling prices influence total demand in the economy?
When interest rates fall, money costs less to borrow. If prices fall, goods are easier to purchase. If consumer confidence is good, people and businesses may be tempted to borrow to buy goods at low prices. Low prices and low interest rates are often the result of poor consumer confidence as business need to lower prices to stimulate demand.
What are the advantages of having a business credit card?
Well, there are many advantages to having business credit cards which includes, lower interest rates, and rewards program. Most credit card companies have different prices when it comes to the price for a business credit card. However, it would cost around one hundred dollars, more or less to apply for a business credit card.
Who determines prices in a market economy?
in a market economy.. the prices are decided by demand and supply....or compention
What are the differences between quantitative and qualitative credit control measures in banks?
The main difference between the general and selective credit control methods is that the former influence the cost and overall volume of credit granted by banks. They affect credit related to the whole economy whereas the selective controls affect the flow of credit to only specified sector of the economy, wherein speculative tendency and rising trend of prices, due to excessive bank credit, is noticed.
Is credit card debt down?
No. Because of the bad economy, high prices, poor prospects for the future, downward slide of the stock market, and a rising national debt; the overall credit card debt is up and rising. As long as the economy is poor and does not look good for the future, credit card debt will increase. People are using their credit cards to buy essential goods and services they can not afford to be without.
What is influenced by the manipulation of reserve-level rates?
Thus, the Fed can influence such factors as economic activities, the money supply, interest rates, credit availability, and prices.
In which type of economy would prices be set by the government?
command economy
What are the effects of increasing interest rates on inflation and consumer prices?
Increasing interest rates make the cost of borrowing funds higher. Due to the higher cost of borrowing the consumer prices typically fall which lowers the rate of inflation. Consumer prices fall because consumers are less likely to use credit to make purchases and when they do a higher percentage of their assets go towards paying interest and in turn lowering their buying power.
What does gas prices destroy?
the economy
