The United States Goes Through a Period of Recession Because

Multiple Choice

The United States goes through a period of recession because of the continuous decrease in the nation's gross domestic product. The Fed intervenes and improves the situation by reducing the discount rate. This move by the Fed will result in:

A) banks obtaining funds at a lower cost.
B) a rise in the interest rates of bank loans.
C) individuals getting discouraged to borrow money and spend it.
D) a drop in the availability of loans to consumers.