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How does a monetary policy of low interest rates affect consumers?

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User Cammi
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It lowers saving rates

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User Aaronqli
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Low intrests rates do close out credits and loans from the common person. this is because, banks and other finnacial institutions prefer to loan the government, and invest in other types of bonds, for this is less riskier and assured.
Money therefore does not flow to the economy affecting consumers. Businesess are aso affected and the flow of goods curtailed thus loss of jobs,and disposable income.
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User Oezi
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