40
practice examMultiple Choice

Practice Exam

Question 40 • Personal Finance

Which statement best summarizes President Clinton’s explanation of interest rates?

Answer
A
Lower interest rates lead to higher prices for goods.
B
Lower interest rates are better for businesses than for citizens.
C
Lower interest rates lead to more spending and more jobs.
D
Lower interest rates do not help the economy improve.

Explanation

Lower interest rates make it cheaper for people and businesses to borrow money. People can spend more, and businesses can invest and hire more workers, creating jobs. So the best summary is that lower interest rates lead to more spending and more jobs.

AI-written and checked against the verified answer.

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