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Interest Rates - Essentials of Economics

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Give us an example (hopefully a personal one) where you have seen a rise or fall in interest rates influence a decision. This can be a business decision or a personal decision. Tell how interest rates could affect economy. Please use something other than car, house, and credit cards.

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The expert gives examples where you have seen a rise or fall in interest rates influence a decision. How interest rates could affect economy is determined.

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In the early 2000s, interest rates were approximately 3-5%, making it more worthwhile to open Certificates of Deposit, and to put money in a savings account. Over the past decade or so, the Federal Reserve has decreased interest rates to close to 0%. As a result of this change in interest rates, I terminated my Certificates of Deposit, and put my money in the stock market instead. The Federal Reserve Board has announced recently that it will start to increase interest rates over the next few months or years. This has influenced my personal decision to continue ...

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  • MBA, University of California, Riverside
  • BSc, California State Polytechnic University, Pomona
  • BSc, California State Polytechnic University, Pomona
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