“Interest rates are down to the lowest they have been in ten years! Hurry by and get the loan you have been wanting! You can buy that car! Build the addition! Go on an amazing vacation! These rates won’t last long!”–Newspaper ad
What does this advertisement tell you about the current economy?
Banks lowered the interest rates they charge for loans. The money supply will decrease, leading to fewer sales for many businesses.
Banks lowered interest rates to decrease the money supply. People will get fewer loans and purchase more products and services.
Banks lowered the interest rates they charge for loans. The money supply will increase, leading to more sales for many businesses.
Banks lowered interest rates to increase the money supply. People will get more loans and purchase fewer products and services. (PERSON WHO ANSWERS THIS CORRECTLY GETS 50 POINTS)
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