Business A-Level
interest rates and gearing
What interest rates and gearing means in Business A-Level, as defined for AQA.
Definition of interest rates and gearing
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Reference: AQA
A rise in interest rates raises loan repayment costs while cutting demand for credit-financed purchases, and significance depends on the business's level of gearing.
Topics that use interest rates and gearing
Related terms
- demographic, environmental and fair trade factors
- income elasticity of demand
- market conditions and competition
Using interest rates and gearing in the exam
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