The role of interest rate is the cost of borrowing money is the compensation or the service and risk of lending money (Heakal, 2016). Lenders take a risk when offering a loan to the borrower, which the risk is the borrower, may not pay the loan back to the lender (Heakal, 2016). When the lender lends money now, the prices of goods and services might go up by the time the borrower finishes paying back the loan (Heakal, 2016). When borrowing for loan the interest rates levels are determine by the supply and demand of credit (Heakal, 2016). If the demand for credit will raise the interest rates while if decrease in the demand for credit will decrease the interest rate (Heakal, 2016).
Influence on Gasoline
The major cost of crude …show more content…
A good idea is to purchase a vehicle, which the car dealership has, vehicles with alternative fuel. The regulations to convert a vehicle to alternative fuel have many strict regulations which vehicle companies have to hire qualified technician has the certifications (Vehicle Conversion Basics, 2015). The technicians have the permissions from federal, state, and local government code requirements, policies (Vehicle Conversion Basics, 2015). The vehicle, which Francisco purchase in 2005, is older now and every two years I have to take the vehicle to be check by certificate person to conduct a smog check. If the vehicles do not pass, the owner has to fix the issue. The main issue of the air quality is of heavy-duty trucks and passenger vehicles (Vehicles, Air Pollution, and Human Health, 2016). Vehicles are a major pollution factor, which pollute the air with nitrogen oxides and carbon monoxide (Vehicles, Air Pollution, and Human Health, 2016). The government is working on providing the people with clean vehicles that are affordable by providing tax credit (Vehicles, Air Pollution, and Human Health, 2016). The government is pressuring vehicle manufactures to develop more fuel-efficient vehicles (Vehicles, Air Pollution, and Human Health, 2016).
Influence on Environmental
When purchasing the vehicle the influence of environmental factors were not considered. The decision was made by the style of truck, color, and price. The factors of health also environment were not a factor because that decision never was consider for instance how was this vehicle going to affect the environment or follow man health.
Circular Flow