Respuesta :
Suppose that the federal reserve is concerned about the effects of falling stock prices on the economy. buy bonds to lower the interest rate could it do.
An interest charge is the amount of hobby due in keeping with length, as a proportion of the quantity lent, deposited, or borrowed (referred to as the principal sum). the entire hobby on a quantity lent or borrowed depends on the essential sum, the hobby price, the compounding frequency, and the period of time over which its miles lent deposited, or borrowed.
the once-a-year hobby charge is the rate over a duration of 365 days. different interest costs practice over distinctive durations, including a month or a day, however, they're usually annualized.
The interest charge has been characterized as "an index of the preference . . . for a dollar of present [income] over a dollar of future profits." The borrower wishes, or needs, to have cash quicker in preference to later and is willing to pay a price—the interest charge—for that privilege.
To learn more about interest rates visit here:
brainly.com/question/14445709
#SPJ4
