In three to four sentences, explain the effects of lower interest rates on consumption and investments.

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Juliet Fuentes

10 March, 12:28

In three to four sentences, explain the effects of lower interest rates on consumption and investments.

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Thumper · Answer 1

If the interest rates of for example bank loans are lowered compared to how much they are now, many will opt to borrow money for investment. The availability of the goods and services will then lead to increase in consumer's consumption.