Which of These Statements Best Describes the Possible Effect of Efforts

question 35

Multiple Choice

Which of these statements best describes the possible effect of efforts by the Federal Reserve Board to lower interest rates?

• A)They can lead to lower capital gains tax rates.
• B)They can lead to higher unemployment in years of budget deficits.
• C)They can spur economic growth by increasing the cost of money for business.-Consider This: The Federal Reserve Board sets interest rates used by banks to borrow money.
• D)They can spur economic growth by increasing the available money supply.

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Definitions:

Interest

The fee or rent that lenders charge for the use of their money.

Third Payment

The third installment of a payment series as agreed upon in a financial transaction or repayment plan.

Monthly Payments

Payments that are required to be made every month, often used in the context of loans, mortgages, or subscription services.

Pay Off

To complete the payment of a debt, thereby fulfilling a financial obligation.