Business Middle School

Question #1. describe two effects that lower banking interest rates have on consumers


Question #2. what does a lower interest rate climate mean for the larger economy

Answers

Answer 1

Answer:

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Explanation:

Answer 2
#1. Lower interest rates give a smaller return from saving. This lower incentive to save will encourage consumers to spend rather than hold onto money.
#2 Low interest rates mean more spending money in consumers' pockets. That also means they may be willing to make larger purchases and will borrow more, which spurs demand for household goods.

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