the federal reserve will decrease interest rates in an attempt to\n\na) stimulate private sector spending…

the federal reserve will decrease interest rates in an attempt to\n\na) stimulate private sector spending during a period of recession\n\nb) stimulate private sector spending during a period of inflation\n\nc) stimulate public sector spending during a period of recession\n\nd) reduce private sector spending during a period of recession\n\ne) reduce private sector spending during a period of inflation

the federal reserve will decrease interest rates in an attempt to\n\na) stimulate private sector spending during a period of recession\n\nb) stimulate private sector spending during a period of inflation\n\nc) stimulate public sector spending during a period of recession\n\nd) reduce private sector spending during a period of recession\n\ne) reduce private sector spending during a period of inflation

Answer

Brief Explanations:

When the economy is in recession, the Federal Reserve may lower interest rates. Lower - interest rates make borrowing cheaper for the private sector, encouraging more spending. During inflation, higher interest rates are usually used to reduce spending. The focus is on the private sector, not the public sector.

Answer:

A. stimulate private sector spending during a period of recession