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If the federal bank reduces its intrest rates will banks make more or fewer loans?

If the federal bank reduces its intrest rates will banks make more or fewer loans?
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If the federal bank reduces its intrest rates will banks make more or fewer loans?

User TaylorAllred
by
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2 Answers

2 votes

Answer:

there will be make more loans since the intrest rate decreases

User Rii
by
7.7k points
4 votes
they would probably have to make more to make up for the money lost due to lowering their rates
User Wundwin Born
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