The Fed and Treasury took action to restore the flow of funds from savers to borrowers in order to encourage all of the following EXCEPT
A) increase the return to savers.
B) enable households to purchase durable goods.
C) increase the likelihood of purchases of houses.
D) allow firms to finance purchases of structures and equipment.

Question

Quizplus · Accepted Answer

The actions taken by the Fed and Treasury were focused on restoring the flow of funds from savers to borrowers in order to encourage spending and investment. The goal was to increase the availability of credit and lower interest rates to stimulate economic growth. However, increasing the return to savers would have had the opposite effect, as it would have discouraged spending and investment. Therefore, option A is the correct choice for the answer.

The Fed and Treasury Took Action to Restore the Flow