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Question: For several years FED, USA central bank kept the USA interest rate low. What may be motivation behind this policy? Recently according to some
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For several years FED, USA central bank kept the USA interest rate low. What may be motivation behind this policy? Recently according to some rumors FED is considering to increase interest rate. How can FED is able to do this? Can you please show on a graph with money demand and supply curves how FED can increase the interest rate?
Thanks a lot.
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