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Title: Fiscal and Monetary Policy For arts industry
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Business |
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February 27, 2001 |
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3 / 654 |
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If the government reduces the interest rate, people would be more willing to purchase goods, such as getting a loan to buy a new house, and firms would be more inclined to expand their operation by investing in new plants or equipments. Reduced interest rate creates employment changes and stimulates economy prosperity... Showed first 250 characters
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Reduced interest rate creates employment changes and stimulates economy prosperity. Vice versa, if the interest rate rises, people would prefer to save their money in banks rather than spending it on goods and services. This decreased desire to purchase goods and services would in turn limit inflation and the rise of cost... Showed next 250 characters
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