Question

ITS TIMED!!!How did lower interest rates help economic growth?

It created opportunities to reduce personal and government debt.
It allowed businesses to increase benefits and wages for employees.
It helped people borrow money to use to purchase products and services.
It forced the government to increase spending on federal and state projects.

BTW, it's either 1 or 3

Answer 1

Explanation: 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.