According to Fisher's interest rate theory, the level of interest depends on people's time preference for...
According to Fisher's interest rate theory, the level of interest depends on people's time preference for funds and investment opportunities in the market.
Question: Try to use this theory to explain the change (rising or falling) of interest rates in THAILAND in recent years.
Homework Answers
The interest rates in thailand have fallen in the past years and there are few reasons that are mentioned by the government.
1. Tourism sector
Tourism sector have taken a hit in the country. Thailand is famous for its tourism if a country like thailand does not get enough tourist in a period of time things start to change in the economy.
2. Fischer theory
It also plays a role in downfall of the interest rates. As there is no income out of tourist the local are not able to get the income they want for living. People are taking away their investment from the banks and if their is no extra money with the public, where will they invest??
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