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Why might a reduction in interest rates year lead to future

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During the recession of 2020, the Federal Reserve lowered interest rates in an attempt to increase investment and consumption spending, which in turn would lower the unemployment rate.

Problem 1: Why might a reduction in interest rates this year lead to a future financial crisis (a so-called "credit crunch" in which it would be difficult for individuals or businesses to borrow from banks)?

Reference no: EM132712369

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