The Fed decides to lower the discount rate offered to banks in the United States.This would ________.

Question

Quizplus · Accepted Answer

A)Lowering the interest rate expands the money supply and encourages lending. This would promote economic activity.
B)Lowering the interest rate expands the money supply and encourages lending. This would promote economic activity.
C)Lowering the interest rate expands the money supply and encourages lending. This would promote economic activity.
D)Lowering the interest rate expands the money supply and encourages lending. This would promote economic activity.
E)Lowering the interest rate expands the money supply and encourages lending. This would promote economic activity.

The Fed Decides to Lower the Discount Rate Offered to Banks