What has relationship to do with the present-value formula


Problem

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?

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Microeconomics: What has relationship to do with the present-value formula
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