Parker Hannifin benefitted when the Federal Reserve ________ in 2008.This Fed action would help increase demand for its machinery components,which allowed Parker Hannifin to increase employment and increase prices.

Question

Quizplus · Accepted Answer

When the Federal Reserve drives down interest rates, it increases the availability of credit and makes it cheaper to borrow money. This helps to stimulate demand in the economy, which can benefit companies like Parker Hannifin that manufacture machinery components. As demand increases, Parker Hannifin can increase employment and prices, which can lead to higher profits. Thus, it is the best choice for the given scenario.

Parker Hannifin Benefitted When the Federal Reserve ________ in 2008