Monetary Policy

Title: Monetary Policy

Essay Details

Subject:	Business
Author:	Mike B
Date:	August 13, 2015
Level:	University
Grade:	A
Length:	2 / 600
No of views:	0
Essay rating:	good 0, average 0, bad 0 (total score: 0)

Essay text:

There may be available money and it may be at an attractive rate, but if the people that borrow think there is reason to worry about the economy, there may be hesitation and postponement. The consumer interest in buying is related to their ability to pay. In a declining economy, consumers will stop or put off purchasing products...

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This is an expected reaction to concerns about future employment. Unemployment can also lower the demand for loans, or cause people to default on loans. Rising loan defaults could make lenders wary enough that a slowdown in credit expansion, particularly to risk-based consumers, could hamper businesses and lower loan production...

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