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To: central_va
I pick #3 of all those, but any of those three can be true at different times depending on other conditions.

GDP is the sum total of all economic output in the economy. Its growth is driven by increases in population and productivity, not interest rates. If I can earn a 20% return on an asset I may have no qualms about borrowing money at 10% to buy it. If I can only earn 5% then I sure wouldn't borrow at 10%.

126 posted on 12/28/2018 9:40:26 AM PST by Alberta's Child ("I'm a cool dude in a loose mood! Hey -- two ginger ales for my girls!")
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To: Alberta's Child
So you can't answer the question. Disingenuous. Craven...

So if the Feds raised the rate to 25% what would happen to GDP? If the Feds lowered the rate to 0% or went negative what would happen to GDP?

128 posted on 12/28/2018 10:10:53 AM PST by central_va (I won't be reconstructed and I do not give a damn)
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