Answer to Question #310762 in Macroeconomics for geoffroy

Question

How would you describe the relation among interest rate (specify which one), GDP, unemployment rate, value of assets (common stocks, bonds, real estate etc.), firms‘ investment (you can add whatever variable you find relevant)?

Answer 1

If interest rates are high the economic growth could be negatively affected. During the period of development, Gross domestic product expands in light of lower loan costs. Okun's law ststes that a rate expansion in joblessness causes a 2% fall in Gross domestic product, which infers a negative relationship. Association's speculation is conversely connected with loan fees, which are the expense of acquiring and compensation to loaning. Additionally an expansion in company's venture straightforwardly builds the current degree of Gross domestic product, since actual capital is delivered and sold. Worth of resources is the most that one firm or individual would pay to claim the resources and its impacted by company's venture.