The Fed And Interest Rates

Essay specific features

 

Issue:

Business

 

Written by:

David S

 

Date added:

January 21, 2013

 

Level:

University

 

Grade:

B

 

No of pages / words:

5 / 1147

 

Was viewed:

7202 times

 

Rating of current essay:

 
Essay content:

This being the first increase in almost five years, it caused quite a stir. When the Fed decides the economy is growing at too quick a pace, or inflation is getting out of hand, it can take actions to slow spending and decrease the money supply. This corresponding with the money equation MV = PY, by lowering both M and V, P and Y can stabilize if they are increasing too rapidly...
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This being the first increase in almost five years, it caused quite a stir. When the Fed decides the economy is growing at too quick a pace, or inflation is getting out of hand, it can take actions to slow spending and decrease the money supply. This corresponding with the money equation MV = PY, by lowering both M and V, P and Y can stabilize if they are increasing too rapidly...
displayed 300 characters

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