Question.2505 - As a tool to combat inflation (which we will learn about in an upcoming week), the Federal Reserve has recently been increasing interest rates. How has this impacted the market for loanable funds that both borrowers and savers participate in? [6 points] The FRED database publishes some two dozen measures of interest rates, including interest rates on credit cards, automobile loans, personal loans, mortgage loans, and more. You can find these at the FRED websiteLinks to an external site.. Visit the site, select a measure that of interest to you, and report it in our discussion. Either download the graph that you are viewing to place it into your discussion or share a direct link to the graph. [5 points] Discuss the graph your have placed into your discussion. Give the reader some perspective on this interest rate over time. Consider these questions: What is the rate today? What is the highest rate you observed over the time period in the graph? When was it? What is the lowest rate? When was it? Did the rate change quickly or slowly over time? [5 points] Has the change in interest rates changed people's behaviors? You can discuss your personal observations (if you wish to share) and/or discuss how theory predicts people respond to changes in interest rates.
Answer Below:
Option xxxxxx for xxxxxxxx funds xxx rate xxxxx is xxx highest xxxx observed xxxx a xxxxxx of xxxx is xxx it xxx observed xx May xxx lowest xxxx observed xxxx a xxxxxx of xxxx is xxx it xxx observed xx May xxx rate xxx changing xxxxxx over xxxx Interest xxxx changes xxx impact xxxxxxxx savings xxx consumption xxx returns xx savings xxxxxxxx and xxxxx investment xxxxxxxx rates xxxx increase xxxx interest xxxxx There xx less xxxxxx of xxxxxxxxx money xx going xxx a xxxx if xxxxxxxx rates xxx very xxxx On xxx other xxxx when xxxxxxxx rates xxx extremely xxx people xxx more xxxxxx to xx for xxxxx or xxxxxx large xxxx of xxxxx to xxxxxxx things xxxx buying xxxxx and xxxxxxxx and xxx educational xxx marriage xxxxxxxx References xxxxxxx Deposit xxxxxxxxx Corporation x d xxxxx Market xxxxxxxx Deposit xxxxx FRED xxxxxxx Reserve xxxx of xx Louis xxxxx fred xxxxxxxxxx org xxxxxx MMNDRMore Articles From Economics
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