Is interest related to economics?

Question

if yes what's the reason?thanks@

Answer 1

Economists call interest rates "the price of money", although to be more accurate it's the cost of borrowing money, or the reward for lending money.

Interest is basic to the banking system (except in Islamic banking, but they have ways around it which come to much the same thing). So it's important to the economy as a whole, as we all use banks to some extent.

Central banks set the base rate, which affects all other interest rates in the banking system. This allows governments to influence the growth of the money supply and hence control inflation.

So interest is pretty fundamental to economics!  :-)

Answer 2

Yes, You moron...

Answer 3

Yes.

Interest rates have an effect on how companies and people spend or save.  High interest rates usually promote saving, while low interest rates promote spending.  High interest rates also may affect inflation in the same manner.

Answer 4

I was interested in economics, so I majored in it during college. So I guess the answer would be a loose yes.

Answer 5

yes because all depends on economics

Answer 6

yes because the interest are determinate by economic authorities

Answer 7

Do your own homework.

But yes, it is. Look it up in a dictionary to find out how.