Question

"Economists warn of an economic downturn. Investments and lending have risen as prices have skyrocketed. Unemployment is up as businesses move up to reduce

costs. The Fed considers lowering discount rates and reserve requirements to increase monetary circulation." This text appears on the economics page of the local newspaper. One of the sentences is incorrect. Which corrected sentence would make the passage accurate?

Answer 1

For me, the incorrect passage would be "Investments and lending have risen". In an economic downturn, investors are reluctant to put money on a market that is experiencing losses.

Economists warn of an economic downturn. Prices have skyrocketed. Unemployment is up as businesses move up to reduce costs. The Fed considers lowering discount rates and reserve requirements to increase monetary circulation.