87.5k views
0 votes
How will a slow and weak economy change the demand for money, interest rates, and investment in an economy?

User ClearLogic
by
5.6k points

1 Answer

7 votes

Answer:

Interest rates rarely increase during a recession. Actually, the opposite tends to happen; as the economy contracts, interest rates fall in tandem. Lowering the interest rates as an economy recedes is known as quantitive easing

Step-by-step explanation:

User Leon Timmermans
by
6.5k points