How do interest rates affect different economic sectors?
August 14th, 2009 | by James |
Joakim M
It’s not made clear as to what sort of economic sectors the question refers to.
It’s not made clear as to what sort of economic sectors the question refers to.
I know this much at least:
-Increasing interest rates
Higher mortgage costs
Lower CPI
Prevents inflation
Slows the economy (decreasing GDP)
Higher risk of recession
-Decreasing interest rates
Lower mortgage costs
Higher CPI
Steers economy towards inflation
Speeds up the economy (increasing GDP)
Lower risk of recession
what i don’t know is how this affects 2 different sectors of the economy.
Are different sectors affected differently at all?
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One Response to “How do interest rates affect different economic sectors?”
By Live 4 life Cena. on Aug 17, 2009 | Reply
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Yes diffrent and Non diffrent.