a.

Interest Rate
b. Dividends and Capital Gains
c. Time Preferences for Consumption, Risk, Production Opportunities, Inflation
d. Producers Expected Returns
e. Consumers Time Preferences
f. Inflation will also have an impact on interest rate levels. The higher the inflation rate, the more
likely interest rates will rise. This happens because lenders will want higher interest rates to
compensate for the future reduction in buying value of the money they are paid.