Here is the synopsis of our sample research paper on The Impact of Interest Rate Changes on the Economy. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 8 page paper explains how interest rate changes will effect the economy. The increase or decrease of the rates, will have an impact on the disposable income and the way in which it will impact on the business cycle. The writer also considers the role of expectation and consumer confidence in relationship to the business cycle. The bibliography cites 4 sources.
Page Count:
8 pages (~225 words per page)
File: TS14_TEintcng.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
of high inflation due to the way it will reduce the amount of disposable income that is available to be spend. However, this is often as far as the perception
is studied. If we look at this in more detail we may see why this world due to the impact it has on the business cycle and how investment and
spending is impacted not only as a result of a change on the short or long term interest rates, but even in response to expected changes, with proactive action being
taken in anticipation of some changes, which result in a similar impact. If we look at the world of commerce we can
consider the impact that a change in interest rates may have. These effects can be seen as direct and indirect. Firstly the changes in interest rates will effect the finances
of the company, both in their financing loans as well as any investment they may have made in interest baring vehicles or loans to other parties (Howells et al, 1998,
Carmichael, 1983). The interest rate changes will also effect their customers, regardless of whether they are commercial or domestic customers and as such the company will find that both its
income and expenditure streams will be effected (Howells et al, 1998, Carmichael, 1983). First we can consider the loans that a company may
have outstanding. If these loans are on a fixed rate then the repayment amount will not be effected, indeed if the interest rates have been increased due to general inflation
then the repayments may appear to reduce in reality to any company which has them. Practically this is why fixed rates are usually only offer on a short or medium
...