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Weaker U.S. economic conditions commonly result in lower interest rates and this would affect capital flows.
The amount of interest that is charged on a loan, deposit, or borrowing each period expressed as a percentage is known as the interest rate. The total amount of interest on a loaned or borrowed sum is determined by the principal amount, the interest rate, the frequency of compounding, and the period of time during which it is lent, deposited, or borrowed. A rate over a year is called an annual interest rate. However, they are typically annualised. Other interest rates apply over shorter time frames, such a day or a month. A dollar of present is preferred over a dollar of future according to one definition of the interest rate, which is described as "an index of the preference."
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