Kyle O'Donnell needs a new car and he is planning to borrow the money from a nearby bank. The other day, he read online that the Federal Reserve is likely to implement policies in the next few weeks that are designed to stimulate the economy. If he waits until after the Fed implements its new policies, Kyle would probably get a lower interest rate on his car loan.

Question

Quizplus · Accepted Answer

The Fed usually pursues policies to decrease interest rates when it wants to stimulate the economy. If Kyle wants a low interest rate on his car loan, he should wait until the Fed acts to stimulate the economy.

Kyle O'Donnell Needs a New Car and He Is Planning