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Which of the following is the most likely consequence of government decreasing interest rates? (2 marks)
Suggested Answer: A
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12 comments · newest first
LA
Lavonna
2 months ago
I’m leaning towards C. Lower rates might not help everyone.
JU
Jules
3 months ago
Definitely A! People will borrow more easily.
PA
Paris
3 months ago
I think A is the best choice. Lower rates mean more spending.
ER
Ernestine
3 months ago
Totally agree, A is the way to go!
ME
Melissia
3 months ago
But what if people are too scared to spend?
CH
Chantell
3 months ago
Lower rates usually mean more borrowing, so A makes sense.
CO
Corrinne
4 months ago
I don't know, isn't it risky to just assume that?
JO
Josphine
4 months ago
A) People spend more, definitely!
MA
Maddie
4 months ago
I thought decreasing interest rates would mean borrowing costs go down, not up, so D doesn’t make sense to me. I’m leaning towards A.
CA
Carlota
4 months ago
I feel like the answer could also be A, but I’m a bit confused because I remember something about how it could slow down the economy too.
DE
Dean
4 months ago
I remember a practice question where lower interest rates led to increased spending, so A seems likely, but I could see how it might not be straightforward.
BU
Bulah
4 months ago
I think decreasing interest rates usually encourages people to spend more, so I might go with A. But I'm not completely sure.