Economic Activities and Conditions—Lesson 4—Assignment

Things that affect the consumers buying power1) Inflation2) Deflation3)Intrest Rates

UnderstandingEconomic Activities and Conditions

Types of Intrest Rates1) Prime Rate2) Discount Rate3) Mortgage Rate

Inflation is an overall increase in general goods.Deflation is a decrease in general goods prices.Intrest Rates is the rate at which interest is paid by borrowers, there is also seven different types of intrest rates

Prime Rate are the rates that banks make avalible to their best customers.Discount Rate is the rate schools are charged to borrow money from the federal reserveMortgage Rate is the rate people get on borrowed money to buy a house