If the Fed were to pursue an easy-money policy (lower interest rates) why would we expect this to stimulate investment demand? Are there limits to the power of an "easy money" policy; are we in a period now when additional monetary ease might now result in increases in investment spending? Same question regarding a "tight-money" policy. What has this relationship to do with the present-value formula?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.