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
These rate cuts are designed to

Question

Quizplus · Accepted Answer

The rate cuts are designed to decrease the real long-term interest rate, which encourages borrowing and spending, ultimately increasing real GDP. The other choices do not accurately reflect the intended outcome of the rate cuts.

In an Effort to Address the Troubled Economy