Question

When the Federal Reserve lowers interest rates, hoping to jump-start the employment market, what does it hope it will accomplish with that monetary policy action?

Answer 1

The Federal Reserve lowering of interest rates is designed to combat sluggish economic performance, stave off economic recession and spur economic activity. Consumers are more inclined to purchase items when rates are low.

Answer 2

D) That businesses will begin increasing investments, which in turn, will cause a need for more employees.

Step-by-step explanation: