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When interests rates are low, spending decreases. Please select the best answer from the choices provided T F

User TaQuangTu
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2 Answers

6 votes

Answer:

F

Step-by-step explanation:

User Molbdnilo
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2 votes

The correct answer is False.

When the money supply increases it lowers the interest rates, which stimulate investments. Lower interest rates reduce the cost when someone borrows money. This motivates people to purchase goods and services because they trust the market. In the case of the corporations, the companies see this as a good moment to invest their money in new projects.

So, the statement “when interest rates are low, spending decreases” is False.


User Nesim Razon
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