Consider the historical level of interest rates and its current level today. Comment on the following: What...

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Accounting

  1. Consider the historical level of interest rates and its currentlevel today. Comment on the following:
    1. What would the impact be of a rise in long term interest ratesbe on savings and investment in the US?
    2. Should the Federal Reserve try and raise interest rates evenmore?

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Answer A What would the impact be of a rise in long term interest rates be on saving and investment in the US Rising interest rates are considered bad news for stock markets They see the cost of borrowing increase for consumers and businesses which reduces spending on goods and services The US has increased rates off the back of improving economic conditions which should create a positive environment for companies to profit When the Fed increases    See Answer
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