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A book of First Class stamps clomipramine monoamine axonal degeneration In normal times the Fed uses this power to manage the money supply to guide very short-term interest rates—rates that banks charge each other on overnight loans—and then lets the private sector do the rest of the work in driving credit to or away from businesses and households. Lowering the rate tends to encourage borrowing, which spurs near-term spending and investment; raising the rate tends to do the opposite. If it prints too much money, it can cheapen a dollars value and cause inflation.

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