Which one of the following actions is the Federal Reserve most likely to take if it is concerned about a slowing economy?
A)lower the tax rate
B)lower the discount rate
C)increase the call rate
D)increase the tax rate
E)increase the discount rate

Question

Quizplus · Accepted Answer

The Federal Reserve may lower the discount rate to stimulate borrowing and investment, which can help counteract a slowing economy. Lowering the discount rate makes it cheaper for banks to borrow money, which can lead to increased lending and economic activity.

Which One of the Following Actions Is the Federal Reserve