businesses will be more likely to expand their facilities
premium
deposit more into interest-bearing accounts, and the interest rate will fall.
it increases
businesses will be more likely to expand their facilities
businesses will be more likely to expand their facilities
When interest rates fall, the value of existing bonds increases. This is because the fixed interest rate on the bond becomes more attractive compared to new bonds issued at lower rates.
premium
deposit more into interest-bearing accounts, and the interest rate will fall.
Changes in fiscal policy Inflation rate Interest rate
it increases
businesses will be more likely to expand their facilities
businesses will be more likely to expand their facilities
decreases
Decreases
The feds don't decrease the interest rate, it just happens when securities are purchased
it increases
If the demand for loanable funds shifts to the left, the equilibrium interest rate will decrease.