Low interest rates after 2008 and 2009 reflect the Federal Reserve's desire to
A) Stimulate economic growth
B) Reduce unemployment
C) Reduce inflation
D) a and b
E) a,b,and c

Question

Quizplus · Accepted Answer

The Federal Reserve's decision to keep interest rates low after 2008 and 2009 was aimed at stimulating economic growth and reducing unemployment. By making it cheaper for individuals and businesses to borrow money, the Fed hoped to spur spending and investment and, in turn, drive economic recovery. However, keeping interest rates too low for too long can also lead to inflation, which is why the Fed pays close attention to inflationary pressures in the economy.

Low Interest Rates After 2008 and 2009 Reflect the Federal