Question 34 The discount rate is the rate of interest that banks pay to borrow money from the Federal Reserve. Which statement accurately describes how discount rates affect the economy? А a lower discount rate makes it easier for people to acquire loans from banks, which allows them to spend more money.

B A lower discount rate makes it harder for people to earn money on deposits, which encourages them to spend rather than save.

C A higher discount rate allows banks to earn higher profits on revenue they generate, which strengthens the overall economy.

D A higher discount rate allows people to earn more interest on bank deposits, which encourages them to save more money.