Question

Why would the Federal Reserve lower

interest rates?
A. Lower interest rates will keep people from wanting to
get a loan.
B. The market is overstimulated.
C. The money people save on an interest rate would allow
them to spend more.
D. Lower interest rates will create a surplus in the housing
market.

Answer 1

Answer: B. The market is overstimulated

Answer 2

B

Explanation: this is because there’s too much interest in the amount of money you are spending