When interest rates are increased, borrowing money becomes more expensive. This translates into both individuals and buisnesses having to slow down their enconomic growth, because financing their activities or production also becomes more expensive.
The Federal Reserve has the <u>double-task</u> of keeping prices manageable in a flourishing economy while keeping unemployment as low as possible. When there's inflation, it's been proven that slowing down the economy by increasing interest rates, tends to reduce inflation. That's why it's a good option. We have to keep in mind, however, that this will raise unemployment as a collateral effect.
As you can see, there's no easy answer when it comes to balancing all factors at the same time.
Hope this helps!
There are many factors that affect the city being a car production place.
First, the amount of flat land can attract the large manufctors. Car production requires a large amount of space, so they're usually in places with large amounts of flat land.
Second, usually the car production plants are near the source of raw materials. They're near coal fields, or iron markets. These raw materials are heavy and bulky, putting factories near the source can reduce the transport cost.
Third of all, with a lot of car production plants in the same area can prevent them from moving out. This is called industrial interia. They can enjoy agglomeration economies which they can for example order iron or steel together in bulk for a cheaper price or enjoy the abundant labor supply together.
Last but not least, the help of government is important too. Government policies and tax allowances can promote the car munfactors to stay.
Albert Sidney Johnston played as a confederate army soldier
If Otto Esche’s idea to use Bactrian Camels to transport salt would have worked out, there would have been a mad rush to the British Columbia, Canada area. The economy for the province would have more than likely boomed, creating a wealthy area. Salt was a very expensive, yet useful commodity as it was used to preserve meats and cure leather. This made it invaluable during this time period. It could also help to sustain soldiers during war (circa Civil War).
