The chairman of the Federal Reserve recommends that the board of governors of the Fed decrease the interest rates charged to commercial banks on money borrowed from the reserve. Which of the following situations is he most likely trying to address? Why?
Select answer from the options below
A. Home sales are decreasing, and a decrease in interest rates would spur an increase in home buying.
B. Bankruptcy is at an all-time high, and a decrease in interest rates would spur bankrupt individuals to borrow money.
C. Commercial banks are failing, and a decrease in interest rates would spur entrepreneurs to start new banks.
D. The number of impoverished Americans is rising, and a decrease in interest rates would reverse the trend.