A) Low interest rates encourage consumers to borrow and spend, while high interest rates discourage such behavior.
If you look at answers B and D, they say exactly the same thing -- the only difference is how the clauses in the sentence are arranged. And the thing they say is wrong. Higher interest rates would encouraging saving and investing.
Answers A and C say opposite things, and A is the one that is correct. Lower interest rates will spur customers and businesses to borrow funds, because repaying the loans will be cheap. But if interest rates run high, borrowing is postponed or not pursued. As Investment News reported (July 25, 2017), "Higher interest rates lead to higher borrowing costs, so mortgages would become more costly and business loan interest rates would rise. Some home buyers might postpone making real estate investments, and small business owners may be disinclined to take on debt."
Low interest rates encourage consumers to borrow and spend, while high interest rates encourage saving.
When interest rates are lower, people will find it cheaper to borrow and spend. Firms also borrow to invest in expansion plans.
When interest rates are low, the incentive to save is low and so consumers will choose to spend more.
A fall interest rates will increase the demand for real assets, which in turn will increase the prices. This will result in an increase in wealth and spur more consumption.
A fall in interest rates results in a depreciation in the value of the home currency, this results in making exports more competitive and imports cheaper.
Thus lower interest rates in the economy result in an increase in Aggregate Demand.
On the contrary, higher interest rates encourage savings, result in a decrease in investments by businesses, reduce the demand for real assets and causes a fall in the real asset prices, results in an appreciation of the currency and render exports uncompetitive and imports more expensive.
Reducing interest rates encourages consumers to borrow more money from the lender.
Explanation:
Interest rate refers to the percentage a lender charges on the total amount borrowed. Banks usually give out loan and they make use of the deposit from savings or checking accounts to fund loans. It also refers to the money bank pay to depositors for depositing their money with the bank.
Interest rates are the cost the borrower has to pay to the lender, it is usually charged as a monthly or annual percentage in the payments to pay the total amount of the loan, so when the interest rates are reduced, it is cheaper to the borrow money. Interest rates can be seen as the price to pay for the amount borrowed, but also as the price a bank pays when people save money.
Borrow more money would be the most fitting. When you think about what interest rates are it is the cost of borrowing an amount of money until it can be repaid.
The correct answer is A. Low interest rate encourage consumers to borrow and spend, while high interest rates encourage saving.
Interest rate is termed as the rate which a bank charges to its borrowers.
Nationally a good interest rat for a loan is 3.7%.
Recession and inflation are some effects of interest rate. We get to hear the federal funds rates if the interest rate falls or rises.
If the interest rate becomes high people will start to spend less to avoid the high cost.
A) Low interest rates encourage consumers to borrow and spend, while high interest rates discourage such behavior.
If you look at answers B and D, they say exactly the same thing -- the only difference is how the clauses in the sentence are arranged. And the thing they say is wrong. Higher interest rates would encouraging saving and investing.
Answers A and C say opposite things, and A is the one that is correct. Lower interest rates will spur customers and businesses to borrow funds, because repaying the loans will be cheap. But if interest rates run high, borrowing is postponed or not pursued. As Investment News reported (July 25, 2017), "Higher interest rates lead to higher borrowing costs, so mortgages would become more costly and business loan interest rates would rise. Some home buyers might postpone making real estate investments, and small business owners may be disinclined to take on debt."
I'll go with that
Low interest rates encourage consumers to borrow and spend, while high interest rates encourage saving.
When interest rates are lower, people will find it cheaper to borrow and spend. Firms also borrow to invest in expansion plans.
When interest rates are low, the incentive to save is low and so consumers will choose to spend more.
A fall interest rates will increase the demand for real assets, which in turn will increase the prices. This will result in an increase in wealth and spur more consumption.
A fall in interest rates results in a depreciation in the value of the home currency, this results in making exports more competitive and imports cheaper.
Thus lower interest rates in the economy result in an increase in Aggregate Demand.
On the contrary, higher interest rates encourage savings, result in a decrease in investments by businesses, reduce the demand for real assets and causes a fall in the real asset prices, results in an appreciation of the currency and render exports uncompetitive and imports more expensive.
Reducing interest rates encourages consumers to borrow more money.
Reducing interest rates encourages consumers to borrow more money from the lender.
Explanation:
Interest rate refers to the percentage a lender charges on the total amount borrowed. Banks usually give out loan and they make use of the deposit from savings or checking accounts to fund loans. It also refers to the money bank pay to depositors for depositing their money with the bank.
b: the establishment clause
b: socialism
The correct answer is:
Borrow more money
Explanation:
Interest rates are the cost the borrower has to pay to the lender, it is usually charged as a monthly or annual percentage in the payments to pay the total amount of the loan, so when the interest rates are reduced, it is cheaper to the borrow money. Interest rates can be seen as the price to pay for the amount borrowed, but also as the price a bank pays when people save money.
Borrow more money would be the most fitting. When you think about what interest rates are it is the cost of borrowing an amount of money until it can be repaid.
The answer would be: A