If the Fed pushes interest rates lower,policymakers at other nations' central banks will most likely ________.
A)follow suit,and drop their rates as well
B)increase their rates
C)do nothing;the Fed's actions have no influence on other countries' central banks
D)keep their rates the same because a drop in U.S.rates will help their economy

Question

Quizplus · Accepted Answer

When the Fed pushes interest rates lower, other nations' central banks are likely to follow suit and drop their rates as well in order to remain competitive and prevent their currency from appreciating too much relative to the US dollar. This can help stimulate economic growth and prevent unemployment.

If the Fed Pushes Interest Rates Lower,policymakers at Other Nations