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Buy custom Federal Reserve; Bonds verses Stocks

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Topic: Business
Number of pages / Number of words: 4 / 885
Essay's paper body

Also, the news of impending recession could raise stocks and affect stock prices, which in turn, have people spending less money and a smaller cushion to support the lifestyles that they are accustomed to living.

Unless there is a stock market crash, the effects of changes in stock values induced by monetary policy would be more concentrated on investment spending and less on consumption spending...


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The results of the changes in stock values in the long run could be devastating because the response would not be as fast as what the Federal Reserve would do to correct the situation.

Let's also look at all the stock market crashes that have happened since the early 1900's, there have been ten stock market crashes during this time frame...


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General points of the essay

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