In 2017, an article in the Wall Street Journal had the headline “Federal Reserve Expected to Deliver Rate Increase.” a. What rate is the headline likely to be referring to? b. Who is able to borrow...

In 2017, an article in the Wall Street Journal had the headline

“Federal Reserve Expected to Deliver Rate Increase.”

a. What rate is the headline likely to be referring to?

b. Who is able to borrow and lend at that rate?

c. Given your answer to part (b), why do the Fed’s actions

to increase or decrease that rate attract so much

attention?

Sources: David Harrison, “Federal Reserve Expected to Deliver Rate,”

Wall Street Journal, June 14, 2017.