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the significance is that the government profit from specific interest rates in an economy

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Q: What is the significance of interest Rates for an economy?
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Related questions

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


What is the significance of interest rate on an economy?

to make the economy more effective and efficient


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 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.


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.


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


How do changes in interest rates affect the 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.


When a bondholder loses money because interest rates in the economy increase it is an example of what kind of risk?

interest rate


When is it good to have low interest rates?

It is good when the economy is growing and the nation is growing. With lower interest rates, people can arrange cash easily through loans and use it to expand their businesses. This would in turn help the economy grow.