Question

Why do the discount rate federal funds rate and prime rate have a limited impact on the long term growth of the economy?

Answer 1

Because the growth wasn’t enough to supply the federal funds

Answer 2

The discount rate federal funds rate and prime rate have a limited impact on the long term growth of the economy due to less amount of money spend on federal funds.

Why do the discount rate federal funds and prime rate have a limited impact on the growth of the economy?

The discount rate federal funds rate and prime rate have a limited impact on the long term growth of the economy because the funds of federal are not too high which make a huge impact on the economy. If there is a large expenditure on a specific thing and we make a discount on that then more money can be saved and can affect the economy.

So we can conclude that the discount rate federal funds rate and prime rate have a limited impact on the long term growth of the economy due to less amount of money spend on federal funds.

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