Which of the following would cause the Fed to lower interest rates?
A)A decrease in taxes
B)A decrease in imports
C)A decrease in investment
D)An increase in wealth
E)A decrease in saving

Question

Quizplus · Accepted Answer

A decrease in investment can signal a slowing economy, prompting the Fed to lower interest rates to stimulate economic activity by making borrowing cheaper and encouraging spending and investment.

Which of the Following Would Cause the Fed to Lower