Scenario: Unemployment is very high, and businesses are not hiring. People are spending less, and the economy is slowing down. What action could the Fed take to help?

A. Raise taxes to give the government more money
B. Raise interest rates to stop inflation
C. Lower interest rates to make borrowing easier and encourage growth
D. Keep interest rates the same and do nothing

To help counter high unemployment and a slowing economy, the Federal Reserve could lower interest rates, making borrowing cheaper and encouraging spending and investment. This approach can stimulate economic growth and create jobs. Raising interest rates or doing nothing would not effectively address the issues at hand. ;

Answered by GinnyAnswer | 2025-07-07

The Federal Reserve could lower interest rates to help counter high unemployment and a slowing economy. Lower interest rates make borrowing cheaper, encouraging consumer spending and business investment. The correct option is C: Lower interest rates to make borrowing easier and encourage growth.
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Answered by Anonymous | 2025-07-09