The trade deficit and its effect on interest rate. Introduction: Interest Rate: A rate at which a borrower is ready to pay and depositor is ready to receive the money is known as interest rate. Trade Deficit: Trade deficit refers to the amount of negative difference between the import and export of goods and services of any country.

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Chapter 6, Problem 9Q

Summary Introduction

To explain: The trade deficit and its effect on interest rate.

Introduction:

Interest Rate: A rate at which a borrower is ready to pay and depositor is ready to receive the money is known as interest rate.

Trade Deficit:

Trade deficit refers to the amount of negative difference between the import and export of goods and services of any country.

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