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CIPS A6 Exam - Topic 5 Question 92 Discussion

Which of the following is the most likely consequence of government decreasing interest rates? (2 marks)
A) People spend more
B) People spend less
C) The economy slows down
D) The cost of borrowing goes up

CIPS A6 Exam - Topic 5 Question 92 Discussion

Actual exam question for CIPS's A6 exam
Question #: 92
Topic #: 5
[All A6 Questions]

Which of the following is the most likely consequence of government decreasing interest rates? (2 marks)

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Suggested Answer: A

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Carlota
12 hours 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.
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Dean
6 days 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.
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Bulah
11 days ago
I think decreasing interest rates usually encourages people to spend more, so I might go with A. But I'm not completely sure.
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