what is the relationship between the economic state of a country and its banks' interest rate? like: a country's government will increase/decrese its banks' interest rate when its country is at prosperity/depression. and why?
2007-01-06 14:50:12 · 3 answers · asked by Anonymous in Social Science ➔ Economics
Interest rates...I see interest rates as either being a 'brake or a gas pedal' much can be said for raising and lower taxes as well. The interest rate is the fastest and most convenient way for a govt' to 'slow or speed' and economy. The interest rate effects the Federal reserve and how much 'money' is in circulation. Currently we're in an inflationary period of substantial growth (and debt), slowly the feds have been raising the interest rate to gradually slow our economy down in small increments. Raising taxes and raising interest would be tantamount to a semi-tractor trailer locking ALL the brakes at once.
2007-01-07 13:42:26 · answer #1 · answered by Adam 4 · 0⤊ 0⤋
surely, with the specific elections for unexpired Senate words, there are 36 seat up in 2010, not 34. 18 for Republicans, 18 for Democrats. So, the Republicans could might desire to win 29 of the 36 seats with the intention to benefit a majority. 40 Republicans - 18 seats up in 2010 = 22 not plagued by 2010 + 29 = fifty one
2016-12-16 03:49:08 · answer #2 · answered by nehls 3 · 0⤊ 0⤋
Depression -> reduced interest rates, to loosen moneatry policy so as to stimulate the economy (especially "real investment"). Vice versa with rising inflation.
2007-01-06 20:02:07 · answer #3 · answered by MBK 7 · 0⤊ 0⤋