What does “0% interest rate” mean and how does it help the economy?
In:
Companies revenue goes bust because sales drop , government issues a line of credit at 0% interest to help alleviate the burden of costs the company needs to pay in the short term (I.e salaries).
Short term is the key word though, because on a macro economic scale this operation is causing the currency to devaluate , and as a consequence the overall price of importing increases (buying items sold in another currency)
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