Homework Answers
Ans. Auto sales are related to monetary policy because Autos are expensive to buy and people usually take money on loans to buy autos. When Fed is following the expansionary monetary policy , interest rates are low , people would be able to pay those interest rates and take more loans which would inturn lead to an increase in the sales of auto. Vice versa is also true.
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Macroeconomics
b. Explain how auto sales relate to monetary policy and interest rates
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