Economic climate of a business

What are interest rates?

Rates that can fluctuate and affect borrowing and spending.

How can interest rates affect businesses with loans?

Changes can affect the cost of finance.

How can interest rates affect businesses using overdrafts?

Changes can affect the cost of finance.

How can interest rates affect consumer spending?

Changes can affect how much consumers spend.

How can interest rates affect business spending?

Changes can affect how much businesses spend.

What is the level of employment?

The level of people in employment.

How can changes in employment affect businesses?

Businesses may be affected by changes in employment levels.

How can changes in income affect consumer spending?

Demand may change as incomes fluctuate.

How can consumer spending affect businesses?

Changes in spending can change demand for products and services.

What happens to demand when incomes fluctuate?

Demand for products and services may change.

What economic factors affect businesses in this topic?

Interest rates, level of employment and consumer spending.