By increasing interest rates seven times within a 1year period beginning in early 1994, the Fed attempted to
A)slow the growth of the economy.
B)increase inflation rates.
C)decrease direct foreign investment.
D)stimulate the U.S. Savings Bond market.

Question

Quizplus · Accepted Answer

By increasing interest rates, the Fed attempted to slow the growth of the economy and prevent inflation from getting too high. Higher interest rates make it more expensive to borrow money, so consumers and businesses are less likely to spend and invest, which can slow down economic growth.

By Increasing Interest Rates Seven Times Within a 1year Period