Economics

Calculating Interest: Principal, Rate and Time are Known--I= p r t

http://www.calculator.net/interest-rate-calculator.html

The level of interest rates in a free market economy are primarily determined by the rate of inflation, the demand for money, and the actions of the Federal Reserve. Lenders of money will generally demand what is known as a nominal interest rate which is equal to a real interest rate plus a premium to cover the inflation rate. The real, or inflation adjusted interest rate, is the percentage rate of return to a lender as measured by an increase in purchasing power.

Yale professor Irving Fisher's economic theory of interest rates laid the conceptual groundwork for establishing that the nominal interest rate equals the real interest rate plus the anticipated rate of inflation. Fisher's mathematical equations in his theory of interest rates are supported by empirical data. A comparison of comparable maturity U.S. Treasury securities, one of which has a fixed rate and the other an inflation adjusted rate, shows that the nominal interest rate always exceeds the real interest rate.

A consumer, whether a borrower or a saver, will generally be quoted a nominal interest rate by a bank on a loan or a savings account.

Consumer Spending Declines

the right to work

Fair Labor Standars act

Morality

lowering intrest rates (A+(

strike

natural disaster

It can lead to negative effects on the economic activity and can even cause a recession.

It causes a boom in spending and production that may not be paid back.

Monetary policy has a more direct influence on the private sector

the total demand for final goods and services in the economy

Peak a+

Overseeing labor union elections and resolving unfair labor practices in the workplace.

federal income tax A+

Department of labor

Congress

Senate

Department of human relations

recession

François Quesnay

American Federation of Labor A+