Objective: Explain why interest rates change within the various financial markets, for the various securities, and the effect the changes have. Interest rates are the cost of borrowing and the income from lending our money. Interest rates have a much larger impact on our financial well-being than we realize. They impact whether we can afford a house or a car. They even influence the number of jobs in the economy. Businesses will only borrow to grow which creates new jobs if the cost is not too high. There are many factors that affect interest rates. Complete LearnSmart Chapter 6. Watch Money Supply and Demand Impacting Interest Rates. The textbook and the video explain several factors that influence interest rates in the economy. Explain at least one factor that would cause interest rates to change and why? What is the impact on the supply of loanable funds? Objective: Explain why interest rates change within the various financial markets, for the various securities, and the effect the changes have. Interest rates are the cost of borrowing and the income from lending our money. Interest rates have a much larger impact on our financial well-being than we realize. They impact whether we can afford a house or a car. They even influence the number of jobs in the economy. Businesses will only borrow to grow which creates new jobs if the cost is not too high. There are many factors that affect interest rates. Complete LearnSmart Chapter 6. Watch Money Supply and Demand Impacting Interest Rates. The textbook and the video explain several factors that influence interest rates in the economy. Explain at least one factor that would cause interest rates to change and why? What is the impact on the supply of loanable funds