If banks become less willing to lend, which category of spending is likely to be most affected?
A)Consumer durables
B)Consumer nondurables
C)Net exports
D)Government purchases

Question

Quizplus · Accepted Answer

Consumer durables are typically purchased through borrowing and loans, so if banks become less willing to lend, consumers may not be able to finance these larger purchases.

If Banks Become Less Willing to Lend, Which Category of Spending