What does the rate cut mean for the U.S. economy? And the individual consumer?
Joe asked: “Federal Reserve Approves Half-Percentage Point Cut in Discount Rate on Loans to Banks”Melvin
What does the rate cut mean for the U.S. economy? And the individual consumer?Joe asked: “Federal Reserve Approves Half-Percentage Point Cut in Discount Rate on Loans to Banks”Melvin Which of the following makes monetary stimulus less effective?built4ball asked: A. Banks make the maximum possible loan whenever they acquire excess reserves. B. Short-term interest rates and long-term interest rates respond equally to monetary policy actions. C. Consumers have a large marginal propensity to consume. D. Investment spending does not respond to lower interest rates.Nellie Economists, do you think this is an accurate view of the crisis?James W asked: Contrary to popular sentiment, we have not been in a recession until now. Since 2007, what people thought was a recession, has actually been a long, slow, government subsidized protracted crash. Instead of letting the markets crash themselves a year ago and begin to level off, government meddling has exhausted resources propping [...] How do mortage loans (or any loans ) work? On international level?vinod s asked: Do I understand this financial breakdown correctly? The US consumers have been fueling the world economy by producing and consuming the most – enabling technological advances as financial backing seems feasible for marketing every need of the consumers. That is the good part. In recent decades the producing part has dwindled due [...] Is there anything we can do to stop the hemorrhaging of our US economy?Softtouchmale asked: It seems with credit being tightened so mightily so that the consumer can’t get a loan without having a nearly perfect credit score; and with wages not keeping pace with inflation; and with the price of necessities like food, shelter and fuel rising at extreme rates; is there anything we can do to [...] How will the recent news about the stock market affect me personally?GMC asked: When the Dow Jones average falls it seems to get everyone concerned. What is the connection between the stock market and the average consumer? I know its harder to get a bank loan, right? And how are we looked upon by other countries?MYLES |