Posted by queen on Friday, December 17, 2010 at 12:02pm.
Interest rates affect people's purchasing decisions in a two different ways. A lower interest rate is obviously preferred in order to minimize expenditures, either long or short term. A lower interest rate is good when taking a loan, buying a house, car, or even taking out a credit card. Interest rates determine the amount a buyer can qualify for or if a buyer can qualify at all. Every time interest rates go up, it<~~clarify "it" eliminates thousands of buyers from the marketplace. Lower interest rates encourage more people to spend or make more expensive purchases than they would with a higher interest rate.
The issue about interest rates is the same as the supply-and-demand concepts. The lower the interest rate, the higher the demand on the market. The higher the interest goes, the lower the demand on the market. The negative thing about low interest rates is that there is a tendency to increase prices of items because of the high rate in demand. In viewing the prospectus of an investment return, a higher interest rate is preferred in order to maximize your<~~mine??? earning. So basically a person's decision either to buy or invest is based upon the interest rates in the different markets.
The content of your paragraphs seems to address the topic just fine.
Read and compare yours and mine very carefully to catch all the changes I made. You need to work on the following.
1. Commas after introductory clauses/phrases
See #3: http://grammar.ccc.commnet.edu/grammar/commas.htm
2. Correct use of singulars and plurals
3. Avoiding "plague words"
http://grammar.ccc.commnet.edu/grammar/plague.htm
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