Research Paper on:
Economic Effects of Changes in the Interest Rates

Unformatted Sample Text from the Research Paper:
of high inflation due to the way it will reduce the amount of disposable income that is available to be spend. However, this is often as far as the perception  is studied. If we look at this in more detail we may see why this world due to the impact it has on the business cycle and how investment and  spending is impacted not only as a result of a change on the short or long term interest rates, but even in response to expected changes, with proactive action being  taken in anticipation of some changes, which result in a similar impact. If we look at the world of commerce we can  consider the impact that a change in interest rates may have. These effects can be seen as direct and indirect. Firstly the changes in interest rates will effect the finances  of the company, both in their financing loans as well as any investment they may have made in interest baring vehicles or loans to other parties (Howells et al, 1998,  Carmichael, 1983). The interest rate changes will also effect their customers, regardless of whether they are commercial or domestic customers and as such the company will find that both its  income and expenditure streams will be effected (Howells et al, 1998, Carmichael, 1983). First we can consider the loans that a company may  have outstanding. If these loans are on a fixed rate then the repayment amount will not be effected, indeed if the interest rates have been increased due to general inflation  then the repayments may appear to reduce in reality to any company which has them. Practically this is why fixed rates are usually only offer on a short or medium