Most economists feel that changes in the interest rate are more likely to affect investment spending than consumer spending.

Question

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Interest rate changes can have a greater impact on investment spending because they affect the cost of borrowing for businesses, which can influence their decision to invest in new projects or equipment. On the other hand, consumer spending is influenced by a variety of factors beyond just interest rates, such as income levels, consumer confidence, and overall economic conditions.

Most Economists Feel That Changes in the Interest Rate Are