How have these policies affected the employment rates for your automobile industry? How have these policies affected the growth of the automobile industry?
How have these policies affected the prices of the product the automobile industry produces?
2007-11-05 11:38:51 · 1 answers · asked by love_to_please_my_man 1 in Education & Reference ➔ Homework Help
Autos = big ticket items. Usually have to be financed/purchased using a loan.
Monetary & fiscal policies determine how much money is in circulation & interest rates which determines whether credit is loose or tight.
The looser the credit the easier it is to get a loan. The easier it is to buy a car.
Tighter credit means harder to get a loan & higher the interest rate. Harder & more costly to purchase a car.
The more cars sold = more people employed in industry.
Related links: http://search.yahoo.com/search?p=federal+reserve+monetary+policy&ei=UTF-8&fr=moz2
http://members.aol.com/rhrrr/fedrlres.htm
Note - monetary/fiscal policy also affects employment vs. unemployment. Higher employment - higher consumer confidence - people more willing to make large purchases.
2007-11-05 11:49:35 · answer #1 · answered by Treadstone 7 · 0⤊ 0⤋