During a depression or recession, which of the following is most likely to happen to interest rates?
A. The Federal Reserve Board will likely raise interest rates.
B. Interest rates will likely rise as the Federal Reserve board decreases inflation rates.
C. The Federal Reserve Board will likely lower interest rates.
D. Interest rates will likely decrease as the Federal Reserve Board increases inflation rates.

During a depression or recession, the Federal Reserve Board is likely to lower interest rates to stimulate economic activity. This action makes borrowing cheaper, encourages spending and investment, and helps recover the economy. Therefore, the correct choice is C.
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Answered by Anonymous | 2025-07-04

During a depression or recession, the Federal Reserve typically lowers interest rates to stimulate economic activity by making borrowing cheaper. This encourages spending and investment, helping the economy recover. Thus, the correct answer is that the Federal Reserve will likely lower interest rates. ;

Answered by GinnyAnswer | 2025-07-04