Sunday, April 21, 2019

Choose one of the subjects ( table of content is required) Term Paper

Choose one of the subjects ( table of content is required) - Term Paper ExampleConsumers tend to secure more than when the bet judge are unkept, and purchase less(prenominal) when the interest rates are high. This is because low interest rates increase the disposable income available to a consumer, and as such, has more income to spend on purchases, whilst high interest rates reduces the disposable income available to a customer, thereby he or she has less income to spend on purchases.As a natural rule of economics, a person tends to spend more when he or she has a high amount of disposable income. However, if such a person has deject amount of disposable income, he or she will probably spend less. As such, interest rates primarily tend to affect the snapper income and the low-income consumers within the economy who do not have a vast fortune to spend of purchases and luxuries. However, this does not rule out the fact that interest rates similarly affect the high-income earn ers within the economy only that its effect on their disposable income is dismal compared to consumers from the other devil income brackets. The rich might only feel the effect of high interest rates while investing, in particular when the cost of investment raises due to high interests rates. As for shopping and purchase, the rich will probably go for pricy high-end luxury goods and services as they attach price to quality, in the sense that the more high-ticket(prenominal) it is, the higher quality it is. As for the other consumers, they tend to purchase within their limits in the sense that higher prices scare them away and reduce their spending and purchasing patterns, while lower prices increase their spending as it increases their purchasing power,As such, interest rates come into play in the sense that higher interest rates equally lead to a rise in common products and services consumed by middle level and lower level consumers. For instance, if a proprietor secures a loan for his or

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