Chapter 8: Measures of Economic Activity
Chapter 8: Measures of Economic Activity
Chapter 8: Measures of Economic Activity
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Interest Rates<br />
• The cost <strong>of</strong> money<br />
• Low interest rates encourage spending<br />
(housing, cars, appliances) and therefore<br />
will increase consumption<br />
• High interest rates discourage consumer<br />
borrowing and depresses spending (less<br />
consumption)