People will spend more if real wealth
A)and interest rates rise.
B)rises and interest rates fall.
C)falls and interest rates rise.
D)and interest rates fall.

Question

Quizplus · Accepted Answer

When real wealth rises, people have more purchasing power and are more likely to spend more money. In addition, when interest rates fall, borrowing money becomes cheaper, which can also encourage people to spend more. Therefore, when real wealth rises and interest rates fall, people are more likely to spend more money.

People Will Spend More If Real Wealth