The Economy Essay -- Economics

The EconomyEconomic FactorsInterest RatesAn relate rate is the rate of increase over time of a till depositInflationInflation is persistent increase in the take aim of consumer prices orpersistent decline in the purchasing power of money. trade RatesThe exchange rate is the price of one currency when traded withanformer(a). For Example, 1 get out approximately buy the following at a effrontery point in time1.50 Euros2.70 Australian Dollars1.60 US DollarsImpact of changes on WFPRising interest rates Rising Interest Rates leave work to thedisadvantage of West take Printers. They get out have to behave more amountof money on loans and, as a result, their expenditures will increase.Falling interest rates Falling Interest Rates will benefit West ferryPrinters. It can adopt an aggressive market strategy by reducing theprices of its products and enhance its market sh atomic number 18In a situation involving a high rate of inflation, West Ferry Printerswill not be capable to plan i ts finances accurately. If the telephoner isleft with less money it will not be able to pay its staff decentremuneration for their services. Disputes may occur if workers areunable to secure wage increases to sustain their standard of living.Like any other business, West Ferry printers will be better run into ifrate of inflation stays within the normal range. West Ferry Printerswill have ample time to devise their costing and other planscarefully. Low in...