Which of the following statements is most correct?

Question

Quizplus · Accepted Answer

There is evidence that high real interest rates are followed by lower levels of growth. When real interest rates are high, borrowing becomes expensive, leading to a decrease in investment and consumption, ultimately resulting in lower economic growth. This phenomenon has been observed in many economies around the world, making option D the most correct statement. Option A is incorrect because high real interest rates are the result of economic conditions, not the cause. Option B may sometimes be true, but it is not a general rule. Option C is false because several studies have shown a correlation between high real interest rates and lower economic growth.

Which of the Following Statements Is Most Correct