when the federal reserve system (fed) lowers the interest rate, it is trying to stimulate the economy by…

when the federal reserve system (fed) lowers the interest rate, it is trying to stimulate the economy by encouraging spending or borrowing. control inflation by restricting the supply of money. encourage spending on education or the military. support tariffs on imports.

when the federal reserve system (fed) lowers the interest rate, it is trying to stimulate the economy by encouraging spending or borrowing. control inflation by restricting the supply of money. encourage spending on education or the military. support tariffs on imports.

Answer

Brief Explanations:

When the Federal Reserve lowers interest rates, borrowing becomes cheaper. This encourages businesses and consumers to take out loans for spending and investment, which stimulates economic activity. Lower - interest rates are not about restricting money supply (which would be to control inflation), encouraging spending on specific sectors like education or military, or supporting import tariffs.

Answer:

stimulate the economy by encouraging spending or borrowing.