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Lower interest rates can be attractive for consumers and businesses. But when the federal government lowers...

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Finance

Lower interest rates can be attractive for consumers andbusinesses. But when the federal government lowers interest rates,the amount of loans granted increases, making it more difficult toobtain a loan. So, in some cases, this can be bad ... for the mostpart, it is good to a lot to be able to have a credit card or ahome loan with a low interest rate. The lower the interest rate,the more you can repay the loan principle.
What do you think?

Answer & Explanation Solved by verified expert
4.2 Ratings (903 Votes)
Ans Generally when the federal government or any central bank of the country decreases the interest rates aim is to increase the money supply in the market when the interest rates are decreased generally there seems to have a positive impact on the economy consumers tend to now spend    See Answer
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Transcribed Image Text

Lower interest rates can be attractive for consumers andbusinesses. But when the federal government lowers interest rates,the amount of loans granted increases, making it more difficult toobtain a loan. So, in some cases, this can be bad ... for the mostpart, it is good to a lot to be able to have a credit card or ahome loan with a low interest rate. The lower the interest rate,the more you can repay the loan principle.What do you think?

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