Which of the following is most likely a consequence of falling interest rate?
A.
Increase aggregate demand
B.
Decrease investment
C.
Increase savings
D.
Decrease consumption
The Answer Is:
A
This question includes an explanation.
Explanation:
If interest rate are too low and credit is too, cheap rates can fund a spending boom with consumers and businesses buying (investment) more than they can afford to pay back.
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