The Economy Essay -- Economics

The EconomyEconomic Factors absorb RatesAn interest rate is the rate of increase over m of a bank forceInflationInflation is persistent increase in the level of consumer prices orpersistent decline in the purchasing power of money.Exchange RatesThe transposition rate is the price of one currency when traded withanother. For Example, 1 will approximately buy the following at agiven point in time1.50 Euros2.70 Australian Dollars1.60 US DollarsImpact of changes on WFPRising interest rates Rising Interest Rates will work to thedisadvantage of West take Printers. They will have to pay more amountof money on loans and, as a result, their expenditures will increase.Falling interest rates Falling Interest Rates will benefit West FerryPrinters. It can adopt an aggressive market strategy by reducing theprices of its products and enhance its market careIn a situation involving a high rate of pompousness, West Ferry Printerswill not be able to plan its finances accurately. If the politica l party isleft with less money it will not be able to pay its staff decentremuneration for their services. Disputes may occur if workers are futile to secure wage increases to sustain their standard of living.Like any other business, West Ferry printers will be better off ifrate of inflation stays within the normal range. West Ferry Printerswill have ample time to devise their costing and other planscarefully. Low in...