Federal Reserve policymakers cut their short-term interest rate target an aggressive half-point to 2% on Tuesday… This cut was the Fed’s 10th attempt this year to support the U. S. economy, which is still weakening after Sept. 11 attacks. The moves represent some of the most furious rate-cutting in Fed history… Fed officials have now pushed the rate banks charge each other for overnight loans to its lowest level since 1961…Major banks lowered the prime rate in [lockstep] with the Fed, bringing down to 5% from 5.5%. That translates into lower rates for home-equity loans, business loans, and some credit cards. Source: "Fed Slashes Interest Rates," ISA Today, November 7, 2001 By taking the actions described in the passage above, the Fed was likely trying to:

By taking the actions described in the passage above, the Fed was likely trying to increase business activity.

Explanation:

In economics, the effective interest rate represents the percentage of interest on a loan and the amount of remuneration due to the lender, in other words is the "rental price of the money".

It is expressed as a percentage for a given period of time and indicates how much of the sum loaned must be paid as interest at the end of the time considered or, from another point of view, indicates the cost of money. In fact, the debtor, upon receiving a sum of money, undertakes to pay a sum greater than that received. The difference constitutes the interest, which is usually calculated as a percentage of the loaned amount. This percentage constitutes the interest rate. The interest rate also varies according to the reference currency, the risk associated with the debtor's solvency and the length of the reference period.  

Therefore, in the scenario of a lower interest rate, the lower the percentage of subjects who are willing to leave their money fixed in a bank account, which will increase consumption and investment in the market directly, which tends directly to strengthen business.

answer///the madrid protocol;

answer///supply is elastic, and demand is inelastic;