Describe two to three macroeconomic factors

Reference no: EM13657963

Many managers do not understand the various ways that interest rates can affect business decisions. For example, if your company decided to build a plant with a 30-year life and short-term debt financing (renewed annually), the cost of the plant could skyrocket if interest rates were to return to their previous highs of 12% to 14%. On the other hand, locking into high, long-term rates could be very costly also with a long period when low short-term interest rates were to be available. As you can see, the ability to know your economic environment and its impact on projected interest rates can be crucial to making good financing decisions.

Respond to the following questions:
1.Describe two to three macroeconomic factors that influence interest rates in general. Explain the effects of each factor on interest rates.
2.Now think about the industry in which you are employed or one in which you have past experience. To what macroeconomic factors is your industry most sensitive?
3.Describe two contemporary factors that seem to be impacting your industry today, and identify their impacts on the interest rates experienced within your chosen industry.

Reference no: EM13657963

Questions Cloud

How much were miscellaneous and administrative : How much were miscellaneous and administrative expenses during the year?

Think about the reflection of te polarized wave : Think about the reflection of TE polarized wave from the boundary among two media. For the angle of incidence θ=60 the amplitude reflection coefficient is equal to r. discover (express through r) the amplitude reflection coefficient in the case of ..

Future structure of fannie mae : Future Structure of Fannie Mae. Fannie Mae plays an important role in the mortgage market

Design and program a two player game : You are requested to design and program a two player game (Squash) in using Flash CS6 that interacts with the player via mouse events for one player and keyboard keys for the other player. Also add a scoring and any other features.

Describe two to three macroeconomic factors : 1.Describe two to three macroeconomic factors that influence interest rates in general. Explain the effects of each factor on interest rates.

Construct a new robotic production facility : Construct a new robotic production facility

The single slit diffraction pattern : The single slit diffraction pattern shown below was made with light with λ = 570 nm. The screen was 2.6 m from the slit. If the slit had a width 8 mm, what is the width w of the central maximum in cm?

Theory of epidemiology of population change : Explore the Global Burden of Disease website; try your hand at developing visualizations to understand burden of disease globally and in Sierra Leone

How much do larry and stacy need to contribute : a. How much do Larry and Stacy need to contribute to the account at the end of each of the next 20 years in order to accomplish their goals?

User Account

All Pages