asked 63.8k views
5 votes
During a recession, what must happen to interest rates to spur economic growth?

asked
User Svens
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1 Answer

4 votes
As people generally become apprehensive about investing and taking risks during recession, the interest rates should be decreased in order to spur economic growth. Since the demand has decreased, the interest rates also need to decrease in order to stimulate the economy and not let it stagnate.
answered
User Dianny
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