22
QuizMultiple Choice

Banking — Unit test

Question 22 of 24 • 26-27 Ignite Economics-KY-Economics

Which statement best describes the effects of low and high interest rates on the economy?

Answer
L
Low interest rates encourage consumers to borrow and spend, while high interest rates encourage saving.
H
High interest rates discourage consumers from investing, while low interest rates encourage investment.
H
High interest rates encourage consumers to borrow and spend, while low interest rates encourage saving.
L
Low interest rates encourage consumers to invest, while high interest rates discourage investment.
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