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consistent basis. Are there possible exceptions to the hypothesis that concern the valuation of common stock? 4 The determina
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In order to change the interest rate the FED changes the Federal funds rate. The federal funds rate is the rate charged by one bank to another when they lend them money on overnight basis. This rate decides various other rates like mortgage rate, business loan or any other type of loans, deposit rates etc. So after changing the Federal funds rate the FED is trying to influence various interest rate related products, deposit rates, economic growth , inflation etc.

When there is a slowdown in the economy then rates can be reduced and when inflation is high then rates can be increased to control it.

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