First of all, we must distinguish the difference between adjustable loan interest rates and fixed interest rates. Adjustable interest rates mean that financial institutions can raise or lower interest rates within a range based on their own risk assessment. A fixed interest rate is a set interest rate that cannot be changed.

The scale of adjustable-rate loans exceeds the scale of fixed-rate loans, indicating that the actual interest rate level in the market is close to a loose state, which is an expansionary monetary policy.

According to the IS-LM model of macroeconomics, when a loose monetary policy is implemented, the LM curve will move to the lower right, and the market interest rate will decrease. The market interest rate is the cost of using funds. When the cost of use is If it decreases, then the demand for money will increase, investment demand, and consumption demand will increase. Moreover, if the interest rate decreases, the exchange rate level will also decrease, the RMB will depreciate, and foreign demand will increase. Our country's foreign trade companies will start production, driving various demands for raw materials, etc.

So the overall level of social demand has increased. This is Keynes’ demand management theory.