Changing interest rates are a direct influence on how much money people are willing to borrow. As a result, option (d) or (iv) is the proper response.
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What influences the borrowing factor of consumers?</h3>
To manage the economy and regulate expansion, central banks alter the money supply.
Because more money is available to both lenders and borrowers, interest rates fall.
Financial policy is constrained when the supply of currency is lowered by withdrawing money from banks, causing interest rates to rise.
To learn more about borrowing factors, refer below
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