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Unformatted text preview: to make up the loss. A senior citizen does not have years of earning potential to recover from a large loss in the stock market. Young people like to see low interests rates. They are typically buying homes, automobiles, furniture, etc. Young people must often use credit to acquire many of the items they want because their incomes are not sufficiently high enough to meet the items they want because their incomes are not sufficiently high enough to meet their immediate desires. If you are a net debtor (owe money), you want to see low interest rates. If you do not have much debt and are a net lender of funds to financial institutions, you naturally want to see high interest rates to enhance your returns. 39...
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.
- Fall '10
- Interest Rates