If Interest rates just mean the bank are making more profit back doesn’t that mean they want them to be as high as possible? What incentivises them to reduce rates and make less money?
In: Economics
You run a lemonade stand. Your supplies cost 5 cents a glass, so you charge 50 cents, making a 45 cent profit.
Your supply costs double. You now charge 55 cents. The price has gone up, but you aren’t making any more money than you were before.
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