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The interest rate is not tied to the amount of money available for lending but the amount of lenders out the there. So if there a huge demand for loans the inte
by abijlani 18y ago
The interest rate is not tied to the amount of money available for lending but the amount of lenders out the there. So if there a huge demand for loans the interest rate goes up to counter balance the demand.
With the economy tanking and the money tightening if they raised the interest rates, nobody would borrow and the situation would get even worse.