During periods of inflation, the general tendency is toward higher interest rates.During recessions, both the demand for money and the rate of inflation tend to fall. at the same time, the Federal reserve tends to increase the money sup- ply in an effort to stimulate the economy. as a result, interest rates typically decline during recessions.

What is the market segmentation theory and how does it relate to this week's topics and the cost of money?

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The market segmentation theory is an economic theory that suggests that financial markets are segmen... View the full answer