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Which is incorrect?
raise interest rates
interest rates
banks loan MORE ► people spend MORE ► firms hire MORE ► people spend MORE
Lower interest interest rates = LESS borrowing
interest
economy grows
True
True
amount money grows over time (mainly earned via loaning or saving)
raise interest rates
interest rates
banks loan MORE ► people spend MORE ► firms hire MORE ► people spend MORE
Lower interest interest rates = LESS borrowing
interest
economy grows
True
True
Which is correct about spending in the economy?
raise interest rates
interest rates
banks loan MORE ► people spend MORE ► firms hire MORE ► people spend MORE
Lower interest interest rates = LESS borrowing
interest
economy grows
True
True
Slow and steady inflation is accetpable.
raise interest rates
interest rates
banks loan MORE ► people spend MORE ► firms hire MORE ► people spend MORE
Lower interest interest rates = LESS borrowing
interest
economy grows
True
True
Rolling into a store with a wheel barrow full of money due to hyperinflation has happened in modern history.
raise interest rates
interest rates
banks loan MORE ► people spend MORE ► firms hire MORE ► people spend MORE
Lower interest interest rates = LESS borrowing
interest
economy grows
True
True
How does The Fed restrict the supply of money in the economy?
raise interest rates
interest rates
banks loan MORE ► people spend MORE ► firms hire MORE ► people spend MORE
Lower interest interest rates = LESS borrowing
interest
economy grows
True
True
What mechanism does The Fed use to loan money to banks?
raise interest rates
interest rates
banks loan MORE ► people spend MORE ► firms hire MORE ► people spend MORE
Lower interest interest rates = LESS borrowing
interest
economy grows
True
True
banks loan LESS ► people spend LESS ► firms hire LESS ► people spend LESS
raise interest rates
interest rates
banks loan MORE ► people spend MORE ► firms hire MORE ► people spend MORE
Lower interest interest rates = LESS borrowing
interest
economy grows
True
True
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