While the Federal Reserve's decision to cut the federal funds rate is expected to ________
Economic growth,its decision to raise the federal funds rate is expected to ________
Economic growth.

Question

Quizplus · Accepted Answer

When the Federal Reserve cuts the federal funds rate, it makes borrowing cheaper for businesses and individuals, which can stimulate economic growth. Conversely, when the Federal Reserve raises the federal funds rate, it makes borrowing more expensive and can slow down economic growth. Therefore, "speed up; slow down" is the most appropriate choice.

While the Federal Reserve's Decision to Cut the Federal Funds