If the Federal Reserve System wanted to stimulate the U.S. economy and reduce unemployment, it would A. cause interest rates to decrease because low interest rates encourage business growth and expansion.
In the Unites States, the Federal Reserve System is in authority of the U.S. economy. It comes with strategies to enhance the economy and to reduce unemployment.
The interest rate can be decreased if we want to stable or enhance the economy of a country like the United States. Low interest rate causes more profit for the business owners who can use this profit for their business growth as well as expansion. Hence, in order to stimulate the economy and to reduce unemployment, lowering the interest rate can help.
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