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Macro-Economic Factors that Affect a Business There are macro-economic factors which affect a business and there implications need to be considered when planning ahead. The interest rate is the basically the cost of borrowing, the price of money. If money is borrowed it is the percentage over and above the original loan that has to be paid back.


The correct answer is C) birth rates.; Economic factors are those factors and data that are present in a market and affect the development and performance of a business and other economic entities.


Macroeconomic factors influence not only a business but also all participants in an economy and include such things as interest rates, inflation, unemployment rates, taxes, discretionary spending ...


See below for an explanation: The key realization here is that microeconomics, as the prefix says, deals with the economy on a narrow scale, for instance, the economic decision making of individual actors. Here are some examples of microeconomics: How a local business decides to allocate their funds How a city decides to spend a government surplus The housing market of a particular city ...


Factors other than price that affect demand and supply are included by using shifts in the demand or the supply curve. In this way, the two-dimensional demand and supply model becomes a powerful tool for analyzing a wide range of economic circumstances.


2. Economic environment. Economic factors that influence the business are the collective of the nature of the country’s economic system, its structures, and economic policies, how the capital market is organized, and nature of factors of production, business cycles, and socio-economic infrastructure.


Economic Factors Affecting Banks. How important is the banking industry? Since the 17 th century the banking industry has marked its niche as one of the most important financial sectors in any economy. Indeed a country’s economic prowess can progress or slow down depending on the performance of its banks.


In reality, these two economic fields are remarkably similar, and the issues they study often overlap significantly. For example, a common focus of macroeconomics is inflation and the cost of living for a specific economy. Inflation is caused by a variety of factors, ranging from low interest rates to expansion of the money supply.


Macro economic analysis answers questions as to how the general price level is determined and what is the importance of various factors which influence general price level. (iii) Economic growth. The macro-economic models help us to formulate economic policies for achieving long run economic growth with stability.


Determinants of economic growth are inter-related factors that directly influence the rate of economic growth i.e. increase in real GDP of an economy. There are six major determinants of growth. Four of these are typically grouped under supply factors which include natural resources, human resources, capital goods and technology.