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Eduardwww [97]
3 years ago
15

In three to four sentences, explain the effects of lower interest rates on consumption and investments.

Social Studies
1 answer:
Ad libitum [116K]3 years ago
3 0
When interest rates on borrowed money are lower, it becomes cheaper for individuals to borrow money, as they must pay less additional money as interest. Thus, they tend to borrow more money and use it to purchase more things. The opposite occurs when interest rates increase.
When interest rates on invested money are lower, people make less return off of their investments, so they tend to invest less. Again, the opposite occurs when interest rates increase.
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Answer:

The main sources of demographic data include vital registration system of births and deaths and census.

From these demographic studies many statistical conclusions can be drawn as given below:

1. Population of the country in any particular year.

2. Birth rate.

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3. Death rate.

4. The difference between birth rate and death rate results in addition to the net population every year.

5. Men-women ratio, married and unmarried.

6. Per capita income.

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7. Per capita agriculture land.

8. Nourishment and undernourishment data.

9. Literacy rate.

10. Density of population per sq. km.

11. The distribution of urban and rural population.

12. Religious composition.

13. Life expectation data.

Demographic Cycle:

From census studies it is found out that about 80% of the world’s population is living in the developing countries and the remaining 20% of the world’s population is living in developed countries. According to history of population the population growth takes place according to a cycle known as demographic cycle. This cycle is divided into following stages:

(a) High Stationary Stage:

It is the first stage during which the population remains stationary because there is a high birth rate as well as high death rate which cancel each other hence the population remains stationary.

(b) Early Expanding Stage:

It is the second stage during which the death rate begins to fall but the birth rate remains unchanged so there is increase in the population. Most of the developing countries like India fall in this stage.

(c) Late Expanding Stage:

It is the third stage during which the birth rate decreases but still the population continues to increase because the birth rate is still higher than the death rate.

(d) Low Stationary Stage:

It is the fourth stage during which the population remains almost stationary because there is low birth rate as well as low death rate. Developed countries like America fall in this stage.

(e) Declining Stage:

It is the fifth stage during which the population begins to decrease because the birth rate is lower than the death rate.

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