The term structure of interest rates


1.during the credit crisis, the fed use a stimulative monetary policy. why do you think the total amount of loans to households and business did not increase

2.when the fed increases the money supply to lower the federal funds rate, will the cost of capital to U.S. companies be reduced? explain how the segment markets theory regarding the term structure of interest rates could influence the degree to which the fed's monetary policy affects long-term interest rates.

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Finance Basics: The term structure of interest rates
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