When interest rates decrease

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Reference no: EM13733576

1. When interest rates (IRs) decrease, how might businesses and consumers change their economic behavior?

2. If there is a decline in the money growth, what might you expect to happen to real GDP (real output) and inflation rate?

3. Is everybody worse-off when IRs rise?

4. Why do managers of financial institutions care so much about FED’s policies?

Reference no: EM13733576

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