The Economy Essay -- Economics

The Economy economical FactorsInterest RatesAn interest rate is the rate of increase over term of a bank depositInflationInflation is moody increase in the level of consumer footings orpersistent decline in the purchasing power of money.Exchange RatesThe exchange rate is the price of one currency when traded withanother. For Example, 1 pull up stakes approximately buy the by-line at agiven point in time1.50 Euros2.70 Australian Dollars1.60 US DollarsImpact of changes on WFP acclivity interest rates Rising Interest Rates leave alone work to thedisadvantage of West ferry Printers. They will have to pay more amountof money on loans and, as a result, their expenditures will increase. locomote interest rates Falling Interest Rates will benefit West FerryPrinters. It drive out adopt an aggressive market strategy by reducing theprices of its products and promote its market shareIn a situation involving a advanced rate of inflation, West Ferry Printerswill not be satisfactory to plan its finances accurately. If the company isleft with less money it will not be able to pay its staff decent stipend for their services. Disputes may occur if workers areunable to secure wage increases to plunk for their standard of living.Like any other business, West Ferry printers will be better off ifrate of inflation stays within the normal range. West Ferry Printerswill have ample time to devise their costing and other planscarefully. Low in...