Question

When the Federal Reserve lowered interest rates following the 2001 recession, what did more people start to do? (1 point) Responses buy homes buy homes default on loans default on loans invest in dot-coms 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, which encourages home buying.