Interest Rates and the Consumer

Paper Summary:

This paper examines how interest rates in the financial community affect the consumer and the stockholder. Investment strategies are also briefly investigated, with an emphasis on how interest rates indicate the performance of stocks in a long- term investment plan. It is hoped that through providing enough information on how interest rates affect the consumer, the reader will be better equipped to make informed discussions on the subject.

From the Paper:

"Interest rates are essentially the rate of change in the economic community that expresses how the financial institutions are performing. They also act as incentives for the consumer, where if the interest rates are higher the customer is more likely to invest their funds. Interest rates are not stagnant, and change to reflect the current state of the market. As the consumer benefits more when he or she invests at a time where the rates are higher, the consumer is more likely to invest at that particular time."

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