Question

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

Answer 1

The best and the most correct answer among the choices provided by the question is the first choice. The statement "When interests rates are low, spending decreases" is True. I hope my answer has come to your help. God bless and have a nice day ahead!

Answer 2

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.