Question

When the Federal Reserve lowered interest rates following the 2001 recession, what did more people start to do?
(1 point)
• buy homes
• default on loans
• invest in dot-coms
• sell stock shares

Answer 1

When the Federal Reserve lowered interest rates following the 2001 recession, more people started to **buy homes**. Lower interest rates typically make borrowing cheaper, encouraging consumers to take out mortgages and invest in real estate.