Question

The Federal Reserve lowers interest rates when it wants to avoid recession and raises interest rates when it wants to slow the rate of growth in the economy_____

a. True
b. False

Answer 1

The Federal Reserve lowers interest rates when it wants to avoid recession and raises interest rates when it wants to slow the rate of growth in the economy. This statement is true.

Step-by-step explanation:

The statement is True. The Federal Reserve lowers interest rates when it wants to avoid a recession and raises interest rates when it wants to slow the rate of growth in the economy. Lowering interest rates stimulates borrowing and spending, which can help boost economic activity and prevent a recession. On the other hand, raising interest rates discourages borrowing and spending, which can help control inflation and prevent the economy from overheating.