If the fed reduces interest rates banks will make more loans or fewer?

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asked Jan 17, 2016 128k views

2 Answers

Ivan Vnucec · Answer 1 · 2016-01-21T22:27:09+0000

More loans. Lower interest rates inspire lending and borrowing because the borrower has less money to pay back to the bank--making borrowing more appealing.

If the fed reduces interest rates banks will make more loans or fewer?

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