Question

Recently, it was observed that people have started saving more rather than spending. This has impacted the demand for luxury goods and services. The decline in the demand led to unemployment in the related sectors. What can be a primary solution to reduce the unemployment levels in the country?

Answer 1

Reduce the costs of luxury goods and make them more accessible to average middle class people 

Answer 2

D. reduce the interest rates

Step-by-step explanation:

If you reduce the interests rate on savings, more and more people will be deceived from saving their money rather than spending it, or investing it, so if you reduce the interests rates it won´t be as attractive for the people that would rather spend their money or invest it and by investing it it will create new employments.