Which statement best describes the effects of low and high interest rates on the economy?

2 answers:

Elena-2011 [213]4 years ago

8 0

I believe the answer is: Low interest rates encourage consumers to borrow and spend, while high interest rates encourage saving.

Which is why banks tend to give low interest rates when the economy is doing well, in order to promote growth to all available economic sectors. High interest rates on the other hand, tend to be implemented during inflation. When people are encouraged to save, the amount of money circulated in the market would be reduced, and the values of the currency would go up.

podryga [215]4 years ago

6 0

Low interest rates encourage consumers to borrow and spend, while high interest rates discourage such behavior.

You might be interested in

According to the passage, World War 1 was mostly

Nastasia [14]

Answer my question on my profile and I’ll answer your question.

6 0

3 years ago

How does the uneven distribution of resources encourage specialization?

Lesechka [4]

Lets say that we ( USA ) have an Unequal distribution of resources with Canada , this means that one of us will have the upper hand , saying that we or Canada will have a better stock of food, medicine , and weapons.

In that case whoever has the underhand will have to borrow from the other one , and than eventually we will have an even trade again.

I really hope that this helps a lot.

3 0

3 years ago

genetic recombination is the process during which linked genes become unlinked. what do geneticists call the offspring thag show

Sloan [31]

Answer:

Recombinants

Explanation:

Genetic recombination can be described as a process in which genetic material is exchanged between different organisms and resulting offsprings are produced. Genetic recombination occurs naturally by the process of meiosis. Meiosis can be described as a type of cell division in which the chromosome number is reduced to half as the parent cell.

5 0

3 years ago

Which of the following BEST expresses how a bill introduced in Arizona’s House of Representatives would become state law? A. the

zvonat [6]

A. the bill is introduced in the House of Representatives; the House of Representatives votes to pass the bill; the State Senate votes to pass the bill; it’s sent to the governor to sign into law

8 0

4 years ago

Read 2 more answers

In 1775, what revolutionary war battle was fought and narrowly won by the british after almost two weeks of fighting on a hill i

riadik2000 [5.3K]

The battle of Bukner hill.

6 0

3 years ago

Read 2 more answers