Question

Considering the current state of the economy and what you know about monetary policy, do you think the Federal Reserve should increase interest rates, decrease interest rates, or keep interest rates constant? Why?

Answer 1

Answer:

The interest rates should be decreased because it would allow banks to borrow money at cheaper costs.

Explanation:

Considering the impact of the disease in the economy the Federal reserve should decrease the interest rates to allow banks to borrow money at cheaper prices to help them keep working and fulfilling their obligations. Also because they moderate economic growth and when there is a step back in it. The federal reserve should make everything possible to help it grow again.

Answer 2

The federal reserve should and has increased interest rates because today's low rates are unsustainable and too liberal in terms of good monetary policy.