If the Fed lowers the interest rate,then
A)only consumption expenditure decreases.
B)only investment decreases.
C)both consumption expenditure and investment decrease.
D)net exports will increase.
E)consumption expenditure decreases and investment increases.

Question

Quizplus · Accepted Answer

Lowering interest rates typically makes borrowing cheaper, encouraging spending and investment, which can lead to an increase in net exports due to a weaker currency.

If the Fed Lowers the Interest Rate,then