Question

When the Fed adjusts its interest rate, it directly influences consumer

Answer 1

Answer:

C.borrowing

Explanation:

By adjusting the interest rates, the Fed influences the interest rate that banks charge customers when they borrow. An increase in the fed funds rate causes a rise in bank interest rates on loans and mortgages.

Interest rates are a monetary policy tool that the Fed uses to regulate the money supply in the economy.  Should the fed desire to increase the money supply, it lowers the interest rates making the cost of borrowing attractive. An increase in interest rate makes borrowing expensive and hence reduces the money supply. The Fed uses interest rates to influence the money supply by encouraging or discouraging borrowing of money by firms and households

Answer 2

Answer:

When the Fed adjusts its interest rate, it directly influences consumer's

Borrowing

Explanation:

Interest is paid on loans which is repaid for a period of time, when such an adjustment is made on interest rate. it directly have effect on how the consumer borrow or lend money.