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    Question

    The US Federal Reserve recently maintained interest

    rates between 5.25%-5.5%. What is the primary reason for this decision?
    A To stimulate economic growth Correct Answer Incorrect Answer
    B To control inflation by reducing borrowing Correct Answer Incorrect Answer
    C To encourage foreign investment Correct Answer Incorrect Answer
    D To increase stock market activity Correct Answer Incorrect Answer
    E To lower the unemployment rate Correct Answer Incorrect Answer

    Solution

    The Federal Reserve aims to control inflation by raising interest rates, which reduces borrowing and slows down economic activity.

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