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    First, what interest rates are we talking about and why is it important to both the economy and business decisions?

    There is an old saying that money makes the world go around. In economic parlance this is not quite correct. Actually, it is the cost of money that makes the world go around, and this cost of money is reflected in the level of interest rates. As the level of interest rates rise, businesspeople and investors demand a higher rate-of-return on their capital investment to justify the expenditure. The result is similar to “walking up a pyramid” in that fewer and f

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    There is an old saying that money makes the world go around. In economic parlance this is not quite correct. Actually, it is the cost of money that makes the world go around, and this cost of money is reflected in the level of interest rates. As the level of interest rates rise, businesspeople and investors demand a higher rate-of-return on their capital investment to justify the expenditure. The result is similar to “walking up a pyramid” in that fewer and

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    tually, it is the cost of money that makes the world go around, and this cost of money is reflected in the level of interest rates. As the level of interest rates rise, businesspeople and investors demand a higher rate-of-return on their capital investment to justify the expenditure. The result is similar to “walking up a pyramid” in that fewer and
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    terest rates. As the level of interest rates rise, businesspeople and investors demand a higher rate-of-return on their capital investment to justify the expenditure. The result is similar to “walking up a pyramid” in that fewer and
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    Put Your Investments on the Right track!Starting a business is not as complicated as it seems. In fact, all you really need to get started is a positive attitude, and the desire to be self employed! The supply of something that's in demand, and money. For now let's focus on the second component of having a business, what's in demand?There is a
    ir capital investment to justify the expenditure. The result is similar to “walking up a pyramid” in that fewer and fewer capital expenditures can justify the targeted rate-of-return. As productive investment decreases, so does the speed at which money circulates (its velocity). With some lag time the economy begins to slow and unemployment starts to increase.

    With such importance attached to interest rates, does the Federal Reserve Board (FED) really control their level? To simplify, we must differentiate between short-term and long-term rates. Interest rates on securiti

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