Interest rates do not affect consumption.

Name: Interest rates do not affect consumption.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Interest rates can have a significant impact on consumption. When interest rates are high, borrowing becomes more expensive, leading to reduced consumer spending on big-ticket items like homes and cars. Conversely, when interest rates are low, borrowing becomes cheaper, leading to increased consumer spending.

Interest Rates Do Not Affect Consumption