Which of the following is NOT an outcome of higher interest rates?
A) Fewer investment opportunities appear profitable to businesses.
B) Households cannot afford to borrow as much toward a home purchase.
C) Savers face higher buying costs in the loanable funds markets.
D) It is more expensive for business firms to borrow money.

Question

Quizplus · Accepted Answer

Higher interest rates make borrowing more expensive and can reduce the amount of borrowing and investment by businesses and households. However, they do not directly increase buying costs for savers in the loanable funds market; instead, savers typically benefit from higher returns on their savings.

Which of the Following Is NOT an Outcome of Higher