How will a slow and weak economy change the demand for money, interest rates, and investment in an economy?

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Social Studies

Lilah Moon

11 March, 20:55

How will a slow and weak economy change the demand for money, interest rates, and investment in an economy?

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Selena Howell · Answer 1

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