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Unformatted text preview: unemployment rate is high. Consumers dont want to spend too much, and they trend to put the money into the bank. Therefore, even though there is more money in the market, inflation is still tame. In addition, low FED rate benefits the economy because it reduces the cost of loan. That allows banks to make more loans to people and thereby increase investment. I believe that the TV statement about air fares is correct. It is impossible to have decreasing air fares when the oil is rising. Todays oil price has been more than $80, and it will rise continuously. Also, base on my own experience, I just purchased a flight ticket which costs me $100 more than last year. Also, the price I checked this month is high than last months. Thats why I believe what the TV says....
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- Spring '11