Interest Rates

Abstract: A 10 page paper discussing the role that interest rates play in progress of the economy. Interest rates fill a primary role in determining the path of the economy and the decisions of businesses and investors. The purpose here is to assess some of the ways that interest rates affect the national economy. In a shrinking or slowly-growing economy, businesses' abilities to grow are greatly reduced, and so investors are more cautious in the prices they are willing to pay for a share of stock. Also, higher interest rates make other types of investments more attractive and many investors will increase their holdings in bond markets while reducing those in the stock market. Bibliography lists 5 sources.

---

Catagory:

Subcatagory: Economics And Economic Theory

---