Between December 2015 and mid-2017,the Federal Open Market Committee raised its target for the federal funds rate four times,and indicated that future increases were planned.General Motors and Toll Brothers faced significant consequences in 2017 from these increases in the federal funds rate target.,where higher interest rates were considered partly responsible for sales declines of new automobiles and houses.This decrease in demand would result in a(n)________ in employment and a(n)________ in prices for General Motors and Toll Brothers.

Question

Quizplus · Accepted Answer

When interest rates increase, borrowing costs for consumers and businesses go up, leading to reduced spending on items such as new automobiles and houses. This decrease in demand can lead to lower production needs, resulting in a decrease in employment. Additionally, to stimulate demand, companies might lower prices, leading to a decrease in prices for their products.

Between December 2015 and Mid-2017,the Federal Open Market Committee Raised