One In the News article titled "Fed to Expand Bond-Purchase Program" suggests that interest rates

Question

Quizplus · Accepted Answer

The article states that the Federal Reserve plans to expand its bond-purchase program, which is a form of monetary policy used to lower interest rates. Lower interest rates will encourage more borrowing for home mortgages and other loans, thus stimulating economic activity. Therefore, option C is the best choice. Option A is incorrect because it suggests that interest rates will rise, which is the opposite of what the article is stating. Option B is also incorrect because lower interest rates don't necessarily encourage more saving. Option D is irrelevant to the article as it pertains to a different economic concept.

One in the News Article Titled "Fed to Expand Bond-Purchase