Eco 372 Week 3 Essay Example

Interest rates is the percentage that is adding to principal amount being borrowed. Our economy has businesses that are started by investors that have capitol to lend for a cost. Businesses need to lease buildings, buy products to have on hand, and pay staff to operate the business. Small businesses have more short-term interest rates that are more appealing to investors to stand behind with less risk. It depends on how the economy views the uncertainties that will determine how they will react to business plans that are presented to them to invest in. The interest rate this year has been the highest ever on record observed by the Federal Open Market Committee. The average rate from 1980 until 2012 is 6.3 and the economy has lowered some rates to open up some doors for the United States to grow. The (FMOC) decides the best interest rate to keep an even flow in our economy to grow an prosper to consider the best future for the citizens of our country. Some investor gamble on how the rates are going to rise or fall over a period of time when considering what investment will be the best to take interest in to make profits.

When a person in the United States has been actively looking for a place of employment and cannot find an employer, then they are categorized as unemployed. Now the unemployment rate is put into percentages as the total available work force seeking employment. Unemployment in the United States were at a high of 15.4 million is October 2009 and now sits at 12.5 million in April 2012. So for about 3 years as the U.S tries to fight through the hardship of the low economy the unemployment has not drop that significantly. What really has a strong impact on the unemployment in a country is supply and demand. When the U.S economy took a drop the demand for certain thing also falls with it as people become more conservative. This also hurts the work of employment because if people buy less then there is need to also make less of whatever is not being