Interest rates includes the dollar, as it is a form of currency in English countries, including Australia. Interest are extra money that you have to pay when you're returning money (which you've borrowed) to the bank. Interests can rise or decrease, therefore having a rate. So, depending on which country you're in, you might have to pay your debt and interest in dollars. This is the relationship between interest rates and the dollar in a global economy.
When the interest rates are high, people would prefer to save than holding money. That means money supply in the economy is decreased. Whereas when the interest rates are low people prefer to hold money and spend, means increased money supply in the economy.
When the interest rates are high, people would prefer to save than holding money. That means money supply in the economy is decreased. Whereas when the interest rates are low people prefer to hold money and spend, means increased money supply in the economy.
as interest rates increase, demand for money increases.
"Yes, it is all good for the economy! Anything that involves money circulating and increasing is great for the economy. High interest checking accounts are good."
Relationship is that if the interest rates increase we are going to invest less and vice-versa.
the cost of borrowing money
the cost of borrowing money
Time value of money, estimation of cash flows and etc
interest rate
Inverse
The major factors that affect the demand for money are price level, interest rates, economy, and the price of money.