The Fed has begun lowering interest rates. What will be the most likely outcome of this action?
A) Consumers will be less likely to borrow from banks.
B) The economy will be more likely to enter a trough.
C) Businesses will be more likely to borrow from banks.
D) The economy will be less likely to see a rise in gross domestic product.
E) Government spending will be more likely to decrease.

Question

Quizplus · Accepted Answer

Lowering interest rates makes borrowing cheaper for businesses, encouraging them to take out loans for expansion or operations, potentially stimulating economic growth.

The Fed Has Begun Lowering Interest Rates