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Economist Mock Interview

Question 22 of 32 for our Economist Mock Interview

Economist was updated by on September 19th, 2016. Learn more here.

Question 22 of 32

If the Government borrows a lot of money, what will this do to interest rates?

"I feel that when the Government borrows funds, the affect it has on interest rates may depend on a few factors such as if the funds are being deployed to support war/military, the current interest rate of the central banks, and the debt to GDP ratio. An interesting read is a white paper published by Noriaki Kinoshita. He shows that borrowing from Governments has minimal effect on interest rates. You may be interested in reading it."

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How to Answer: If the Government borrows a lot of money, what will this do to interest rates?

Advice and answer examples written specifically for an Economist job interview.

  • 22. If the Government borrows a lot of money, what will this do to interest rates?

      How to Answer

      Display to the hiring manager that you are familiar with the basic concepts of economics. Your answer can be to the point, however; your opinion should be supported.



      Written by Rachelle Enns

      Answer Example

      "I feel that when the Government borrows funds, the affect it has on interest rates may depend on a few factors such as if the funds are being deployed to support war/military, the current interest rate of the central banks, and the debt to GDP ratio. An interesting read is a white paper published by Noriaki Kinoshita. He shows that borrowing from Governments has minimal effect on interest rates. You may be interested in reading it."

      Written by Rachelle Enns

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