In order to restrict spending by businesses and households, the Fed would take measures designed to lower interest rates.

Question

Quizplus · Accepted Answer

The Fed conducts monetary policy by managing the money supply and interest rates. Lower interest rates would reduce the cost of borrowing, thus leading to more spending. If the Fed wanted to restrict spending, it would be more likely to raise interest rates.

In Order to Restrict Spending by Businesses and Households, the Fed