interest rate effect
Definition
The impact of a rise in the cost of borrowing on production costs due to price inflation within an economy. The interest rate effect reflects the fact that most consumers and business finance managers will cut back on their borrowing activities when interest rates increase.
Related Articles
- Choosing an Online Forex Trading Platform *
- Common Stock Strategies - Part 3 *
- Common Financial Instruments of Forex *
- Which High Return Investment Is Right For Your Retirement Savings? *
- An Overview of Mortgages *
- Introduction to the Economy, Fiscal and Monetary Policy *
- Does Dollar-Cost Averaging Work With ETFs? *
- Dollar Cost Averaging Stock Strategy *
Related Videos
http://www.businessdictionary.com/definition/interest-rate-effect.html


