There is an increase in economic activity when the Federal Reserve Board:
A)sells government securities.
B)lowers the discount rate.
C)increases reserve requirements.
D)restricts credit controls.
E)sells investments.

Question

Quizplus · Accepted Answer

Lowering the discount rate makes it cheaper for banks to borrow money from the Federal Reserve, encouraging them to lend more to businesses and consumers. This can stimulate economic activity by increasing spending and investment.

There Is an Increase in Economic Activity When the Federal