If the Fed lowers the federal funds rate,which of the following occurs?
A)Investment increases.
B)Consumption expenditure decreases.
C)The price of the dollar on the foreign exchange market increases.
D)Net exports decrease.
E)Government expenditure on goods and services increases.

Question

Quizplus · Accepted Answer

When the Fed lowers the federal funds rate, it becomes cheaper for businesses to borrow money. As a result, investment increases, which can lead to economic growth and job creation.

If the Fed Lowers the Federal Funds Rate,which of the Following