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

Question

Quizplus · Accepted Answer

Lowering the federal funds rate encourages borrowing and increases the money supply, leading to lower interest rates and increased investment.

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