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Essay Details:
Essay text:
To quote, "Industrials Edge Up
4.32 Points Amid Caution on Interest Rates," and "Industrials Track On
13.53 Points Despite Interest-Rate Concerns." Why such a concern with
interest rates? A week before, in the last week of March, the Fed had
pushed up the short-term rates. This being the first increase in almost
five years, it caused quite a stir.
When the Fed decides the economy is growing at too quick a pace, or
inflation is getting out of hand, it can take actions to slow spending
and decrease the money supply. This corresponding with the money
equation MV = PY, by lowering both M and V, P and Y can stabilize if
they are increasing too rapidly...
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