If the Fed wants to lower the interest rate,it will

Question

Quizplus · Accepted Answer

When the Fed wants to lower the interest rate, it needs to increase the money supply. This means that it buys government securities on the open market, injecting money into the economy and expanding the money supply. This increase in the money supply leads to a decrease in interest rates as borrowers have more funds available to pay off loans, and lenders compete to offer loans at lower interest rates.

If the Fed Wants to Lower the Interest Rate,it Will