Answer to Question #240118 in Economics for Aman

Question #240118
Analyse how a cut in the rate of intrest could reduce unemployment
1
Expert's answer
2021-09-22T07:28:27-0400

Lower interest rates mean that the cost of borrowing is lower. When it's easier to borrow money, people spend more money and invest more. This increases aggregate demand and GDP and decreases cyclical unemployment.


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