How did lower interest rates help economic growth?

2 answers:

8 0

Answer: The Fed lowers interest rates in order to stimulate economic growth. Lower financing costs can encourage borrowing and investing. However, when rates are too low, they can spur excessive growth and perhaps inflation. ... Rate increases are used to slow inflation and return growth to more sustainable levels.

Explanation:

Nonamiya [84]2 years ago

4 0

Answer: C. It helped people borrow money to use to purchase products and services

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