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How does macroeconomics affect business?

Economics Dec 14, 2020

How does macroeconomics affect business?

Expert Solution

Macroeconomics affects business in a huge variety of ways. A financial institution like the Federal Reserve will determine interest rates, which in turn determines how much a business will owe if it borrows money. A national tax policy will determine how much a business will need to pay to support policies. Issues like trade deals can affect a business supply chain by determining where they can or cannot purchase goods or resources at the lowest prices. Finally, laws determine the hiring and firing of workers, who will provide a business with its labor.

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