Skip to main content
Macroeconomics
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
Try the app
My Course
Learn
Exam Prep
AI Tutor
Study Guides
Flashcards
Explore
Try the app
Back
19. Monetary Policy
Download worksheet
Problem 1
Problem 2
Problem 3
Problem 4
Problem 5
Problem 6
Problem 7
Problem 8
Problem 9
Problem 10
Problem 11
Problem 12
Problem 13
Problem 14
19. Monetary Policy
Download worksheet
Practice
Summary
Previous
8 of 14
Next
19. Monetary Policy / Expansionary and Contractionary Monetary Policy / Problem 8
Problem 8
How does the Federal Reserve use interest rates to influence investment and aggregate demand?
A
By lowering interest rates to increase investment and aggregate demand.
B
By keeping interest rates constant to stabilize investment and aggregate demand.
C
By eliminating interest rates to allow free market forces to dictate investment.
D
By raising interest rates to increase investment and aggregate demand.
AI tutor
0
Show Answer