A television report states: "The Federal Reserve will lower the discount rate for the fourth time this year." This report indicates that the Federal Reserve is most likely trying to:

Question

Quizplus · Accepted Answer

Lowering the discount rate is a tool used by the Federal Reserve to stimulate the economy. By making it cheaper for banks to borrow money, they are encouraged to lend more to consumers and businesses, which can increase spending and economic activity. It is not directly related to reducing inflation, saving the banking industry, or improving the savings rate.

A Television Report States: "The Federal Reserve Will Lower the Discount