A high interest rate can be a sign that it is going TOO well with an economy, whilst a low interest rate can i

Question

Can someone please explain this statement for me, it is for a project. I must also include Graphs. If someone can give me a website maybe where I can find info like this. The question is based on South Africa and their interest rates. If you don't know about South Africa's economy, please explain just the statment. Thank you, much appreciated.

Answer 1

South African Economy Information
http://www.info.gov.za/aboutsa/economy.h...

Good luck.

Answer 2

This link explains this click on the links to explain further
http://en.wikipedia.org/wiki/interest_rate
Supply and demand
If you have a shop your stock is the supply
The customers are the demand
If no customers come in the shop you won't sell anything
This is low interest
If your shop is full and your supply is sold
This is high interest
If you don"t sell anything this causes unemployment a recession or a depression low interest
If you sell everything there is nothing left to sell this is the extreme
high interest things have gone TOO well
So we need to balance the interest rate so things keep going upwards slowly

South African Economy Information
http://www.info.gov.za/aboutsa/economy.htm

South African stock Exchange Johannesburg
http://www.jse.co.za/

South African Reserve Bank
inflation rates interest rates all you need
http://www.reservebank.co.za/

Hope this makes it easier for you