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Economic Indicators (Inflation (Inflation is the increase in the general…

- - - - Many households will have a lower standard of living
      - Decrease in consumer demand for good services
      - Households:
      - Businesses:
        
        It may be harder to attract extra finance
        
        There may be a reduction in sales and profits
    - - Economy
      - Reduce economic activity
      - Social problems my increase
- - - - The effect of low interest rates for household, business and the economy
      - Household:
      - Access to cheaper finance will result in more borrowing
      - More disposable income
      - Businesses:
      - Expansion and new product development will be easier
      - Repayments on any existing loans will fall
      - Economy:
      - Increase borrowing and spending
      - Increase investment will help reduce unemployment
- - - - Impact of national debt on household’s business and the economy
      - Households:
      - Taxes may increase
      - Government spending may reduce
      - Businesses:
      - Taxes may increase
      - Reduced consumer demand
      - Economy:
      - Services are likely to be cut back