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Answer to Question #100427 in Economics for JON GLASGOW
Question #100427
WHY THE COST OF BORROWING IN THE USA STABLE COMPARED TO OTHER COUNTRIES IS STABLE AND INDEPENDENT OF THEIR DOMESTIC GROWTH
Expert's answer
The Fed lowers the fed funds rate to stimulate the economy by making it cheaper to borrow money. Rates on credit cards and home equity lines of credit track the fed funds rate closely and provide more spending power for Americans.
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