Reference no: EM133088537

Respond to the following either agreeing or disagreeing

Throughout the simulation the main indicator of the economy's ups and downs was the market interest rate. Although reports such as C95 and C96 provide some information on how the economy is going, our team did not focus on those too much. Instead, we looked for trends in the market rate. When the market interest rate begins to fall this usually means that the economy is not doing so well. Spending and borrowing are being encouraged by the Federal Reserve and saving is discouraged. The Federal Reserve wants money flowing into the economy. Low interest rates in loans are attractive for borrowers, because they will pay less in interest for the life of their loan. Low interest rates in deposits discourages individuals from saving, because there is no great return offered.