Interest Rates
- Created by: Elysha Joseph
- Created on: 15-01-13 12:31
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- Interest Rates
- If Interest Rates increase
- Borrowing decrease and savings increase
- people buy less general prices decrease
- this slows down inflation
- people buy less general prices decrease
- Borrowing decrease and savings increase
- If interest rates decrease
- Borrowing increaces and people save less
- people buy more so general prices increace
- this causes inflation
- people buy more so general prices increace
- Borrowing increaces and people save less
- Interest rates are the cost of borrowing and saving
- they are expressed as a percentage
- they are set by the Bank of England
- they are expressed as a percentage
- Imports
- If interest rates increace our imports will increace as other products will be cheaper
- If interest rates decrease our imports will increase
- if interest rates increase our imports will decrease
- Exports
- if interest rates increase our exports will decreace
- If interest rates decrease our exports will increase
- as the intrest rate increases the pound gets stronger making exports more expensive
- If Interest Rates increase
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