what repercusions is the interest rate cut going to have in the economy?

Answer 1

Stocks will rise in nominal terms over the short-run, people will continuing borrowing to finance consumption, our savings rate will continue to decrease, and instead of having a recession this year we'll have a recession + runaway inflation in 5 years.

Answer 2

Lower rates mean it's cheaper to borrow money. That means that it's cheaper to do business. That means more business will be done. Manufacturers will buy more raw material, and invest in more machinery and labor to make their product.

Retailers will buy more goods from their suppliers. Consumers will buy more goods from their retailers. People will buy more cars, houses, and other major purchases, because the interest rates are lower.

Answer 3

Basically will be good for the economy.
People will buy more stuff, like cars, refrigerators, stereo's because it will be easier for them to borrow money. So retail stores will buy more stuff from manufacturers.
So manufacturers will have to produce more stuff. More people will be able to get and keep their jobs in the businesses that produce Stuff.

It's all about Stuff.

Answer 4

greater production. look at your production function

production = Labor X Capital. Remove an anchor on labor such as the income tax and / or capital such as interest rates and you get higher producttion. see:
www.Fairtax.org

The impact of the FairTax on interest rates

http://www.fairtax.org/PDF/TheImpactOfTheFairTaxOnInterestRates.pdf