The Fed took action in late 2008 to significantly decrease the federal funds rate. This action is best considered:
A)an offensive action.
B)a defensive action.
C)both offensive and defensive actions.
D)neither offensive nor defensive actions.

Question

Quizplus · Accepted Answer

The Fed's action to decrease the federal funds rate is considered an offensive action because it is intended to stimulate economic growth by making it cheaper for businesses and consumers to borrow money.

The Fed Took Action in Late 2008 to Significantly Decrease