If the economy has high levels of unemployment,the Fed will raise interest rates to stimulate spending.

Question

Quizplus · Accepted Answer

If the economy has high levels of unemployment, the Fed will typically lower interest rates to encourage borrowing and spending to stimulate the economy. This is because when interest rates are lowered, it becomes cheaper for individuals and businesses to borrow money and invest in projects, which can create more jobs and reduce unemployment.

If the Economy Has High Levels of Unemployment,the Fed Will