... sharp drop in the nation's supply of money, this could be signaling that the U.S economy will stall again. After a similar change in the money supply occurred last summer during the economics initial rebound form the recession, economic growth vanished in the second half of the year. Because of the year's experience, officials don't want to take any chances; it seems like ... of forgone interest. Secondly, with lower rates, more borrowing will take place and interest payment will go down. Now, as banks lend money, the cash the Fed supplies to the banking system is multiplied several tim...

• Word Count: 570
• Approx Pages: 2
• Grade Level: High School