Quote:
Originally Posted by Undertoad
If more money is made available for a thing, the price of that thing increases. You can't fight this; it is a very powerful force doing what it does best.
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Monkey wrench. The Fed just dropped interest rates by 0.5%. Now more money is made available to the economy. Therefore the prices of everything will only increase? How does throwing more money in the economy make more wealth? After all, the Fed is supposedly lowering interest rates only to stave off recession - the manufacturing of fewer goods. OK you Econ 101 experts. Explain that one.