15
QuizMultiple Choice

Introduction to Work — Test

Question 15 • Career Planning and Development

When interest rates decrease, what is the most likely effect on economic activity?

Answer
A
The government collects more tax revenue because banks are charging less interest.
B
Businesses immediately raise wages for all employees to match lower borrowing costs.
C
Consumers stop purchasing goods because they expect prices to drop further.
D
Borrowing becomes less expensive, leading to increased spending by individuals and businesses.
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