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In Business / College | 2025-07-07

Low interest rates on loans encourage people to
A. spend less
B. save less
C. spend more
D. save more

Asked by ay1inlain3z

Answer (2)

Low interest rates on loans encourage people to spend more by making borrowing cheaper, leading to increased consumer expenditures. As borrowing becomes more affordable, individuals are less likely to save due to lower returns on savings. This combination leads to increased economic activity and consumption. ;

Answered by GinnyAnswer | 2025-07-07

Low interest rates on loans encourage people to spend more by making borrowing cheaper, resulting in increased consumer spending while reducing the attractiveness of saving. The chosen multiple-choice option is C. spend more.
;

Answered by Anonymous | 2025-08-23

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