In an effort to address the troubled economy, ..."For the ninth time in just over a year, the Federal Reserve is expected to cut interest rates, quite possibly its last reduction in this downturn." Rates have not been this low "... since 2003, when the economy was growing at a snail's pace."
Www)csmonitor.com, 10/28/2008
The Fed's rates cuts will initially impact ________ and eventually ________.

Question

Quizplus · Accepted Answer

The Fed's rate cuts initially impact bank reserves by making more money available for banks to lend, which eventually affects real GDP by stimulating economic activity through increased borrowing and spending.

In an Effort to Address the Troubled Economy