Question:

Please ASAP =) What are the effects of the Federal Reserve instituting an easy money policy?

by  |  earlier

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Effects on A:Availability of Credit

B: Interest Rates

C. Investment spending

Thank you sooooo much xoxo

peace v

P.S. dont mean to be rude but I have to finish it tonight going on a trip and I need this answered tonight!!

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2 ANSWERS


  1. A: Will lead to more availability of credits (through cheaper interest rates)

    B: Interest rates will fall (because money supply will increase with unchanged demand for money)

    C: Investment spending will increase because more money are available for cheaper (lower) interest rates thus making more projects profitable.

    But in the long-run money are neutral for real economy.


  2. B interest rates

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