Gig recently heard a radio report that the Fed will try to help get the U.S.economy back on track.If the Fed takes action,Gig would likely see:
A)Lower interest rates.
B)An increase in the size of the government's budget deficit.
C)Lower government spending.
D)An increase in the minimum wage.

Question

Quizplus · Accepted Answer

Lower interest rates would stimulate borrowing and investment, which can help increase economic growth. An increase in the size of the government's budget deficit would require the government to borrow more, which can increase interest rates and potentially slow down economic growth. Lower government spending and an increase in the minimum wage are not directly related to Fed action to stimulate the economy.

Gig Recently Heard a Radio Report That the Fed Will