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some financial intisutions may take action to remain profitable because of the lower interest rates. Obviously when the interest rates are lower, companies tend to lose money, because it is cheaper for consumers to pay back loans. Financial stability would definately be effected. However, I believe inflation would stay pretty low, even if unemployment were to rise.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9476368

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