The conversation between human and AI assistant.
What are interest rates?
Yes, please. How do interest rates affect the overall economy?
Interest rates play a significant role in the overall economy. Lower interest rates encourage borrowing and spending, particularly on large purchases such as homes and cars, which can stimulate economic activity. On the other hand, high interest rates can deter borrowing and spending and can slow economic growth. Moreover, interest rates are often used as a tool by central banks to control inflation and stabilize the economy.