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Anestetic [448]
3 years ago
11

The federal reserve can cause unterest rates on mortgages to decrease by:

Social Studies
2 answers:
gtnhenbr [62]3 years ago
5 0

Answer:

The correct answer choice is A

Explanation:

If the Fed buys large quantities of securities in the open market, it pays for those securities with newly created dollars. These dollars then increase the money supply in the economy, which increases the amount of loanable funds in the economy.

This in turn lowers all the interest rates accross the economy, including the rates on mortgages.

zhannawk [14.2K]3 years ago
3 0

Answer:

C.lowering the discount rate on short term loans to banks.

Explanation:

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