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
These rate cuts are designed to

Question

Quizplus · Accepted Answer

The rate cuts are expected to decrease the real long-term interest rate, which encourages borrowing and investment, leading to an increase in real GDP. The other options are not directly related to the goal of the rate cuts.

In an Effort to Address the Troubled Economy