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Interest Rates and Normative Economics What should the Government do about interest rates? The Bank of Canada's central interest rate is a major tool in
Interest Rates and Normative Economics What should the Government do about interest rates? The Bank of Canada's central interest rate is a major tool in administering scal policy and influencing the economy. The key banking rate had been extremely low from the recession in 2009 to the end ofthe Covid-19 restrictions in 2022. This means the practice of reducing the interest rate in order to boost economic activity can't happen since interest is already so low. Read the attached articles and respond to the following questions: I Are the current interest rates a problem? a Should the interest rates stay low? Why or why not? I How would a change in interest rates affect consumer behaviour? 0 What would be some ofthe positive or negative effects to changes in the interest rate. Be sure to include reference to the current economic climate
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