In an effort to address the troubled economy, ...ʺFor the ninth time in just over a year, the Federal Reserve is expected to cut interest rates, quite possibly its last reduction in this downturn.ʺ Rates have not been this low ʺ... since 2003, when the economy was growing at a snailʹs pace.ʺ
The Fedʹs rates cuts will initially impact__________and eventually __________.

Question

Quizplus · Accepted Answer

The Fed's rate cuts initially impact bank reserves by making borrowing cheaper, which can increase the money supply and eventually affect real GDP by stimulating economic activity.

In an Effort to Address the Troubled Economy