If the Fed Is Targeting Interest Rates, Then During an Economic

question 63

Multiple Choice

If the Fed is targeting interest rates, then during an economic downturn it will take actions that will

• A)raise interest rates, thus spurring economic growth.
• B)raise interest rates, thus slowing economic growth.
• C)lower interest rates, thus spurring economic growth.
• D)lower interest rates, thus slowing economic growth.

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