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

1 answer:

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.

You might be interested in

Why do you think the wright brothers did not paint their airplane

Savatey [412]

<em>"Historically, it has been proven that the wright brothers spent all their money on building and testing their airplane. Although it was a genius idea, their attempt wasn't very successful. The Wright Brothers then lost all their wealth, and could not afford to buy paint..."</em>

Quoted from "Hogwash History"

7 0

3 years ago

Yolanda and Fae both lost their part-time jobs at Fast-Foods-R-Us because of cutbacks. Yolanda dealt with the stress by revising

Nataly_w [17]

Answer:

a.Yolanda is using problem-focused coping; Fae is using emotion-focused coping.

Explanation:

Yolanda lost her job and immediately began to search for another job, submitting her resume, while Fae sought out the help of her friends to overcome the grief of losing her job.

Yolanda is trying to cope with the grief and sadness of suddenly losing her job by going out to search for other jobs and submitting her qualifications and resume which is problem focused coping.

While Fae is trying to cope with the grief of the loss of her job through the help of friends. This is emotion focused coping.

3 0

3 years ago

Read 2 more answers

Every time alice cleans her room properly and makes the bed, she receives a marble. when she accumulates 100 marbles, she can ge

MrRissso [65]

The answer is "token economy".

A token economy is an arrangement of possibility of administration in light of the methodical fortification of target conduct. The reinforcers are images or "tokens" that can be traded for different reinforcers. Marbles are being utilized as tokens that would then be able to exchanged for a coveted protest—the computer game.

6 0

3 years ago

Due to the violent nature of the sport, professional american football players are at risk of suffering concussions (or brain in

allochka39001 [22]

Answer:

It can reduce brain injuries.

Explanation:

This rule of wearing helmet is a good initiative taken by the commissioner of the national football league. these helmets reduce the risk of concussions because these helmets are made of good materials and able to protect the head of the players from brain injury. So avoid such type of injuries, the helmet should be used by the player which can absorb all the energy and protect the head of the player.

7 0

3 years ago

People around the world rely on the Amazon Rainforest for all of the following resources except __________.

defon

The answer is Except their water.

Amazon Rain forest is rich in Oil, Medicinal Plants, and it create about 20 % of world's oxygen, but people around the world doesn't rely on their water so much

4 0

3 years ago