Lower interest rates on business loans usually result in a(n):
A)decrease in aggregate demand.
B)decrease in aggregate supply.
C)decrease in investment spending.
D)increase in government spending.
E)increase in aggregate expenditures.

Question

Quizplus · Accepted Answer

Lower interest rates on business loans make it easier and more affordable for businesses to borrow money, thereby increasing their investment in new projects and expansion. This, in turn, leads to an increase in aggregate expenditures and a boost in economic activity.

Lower Interest Rates on Business Loans Usually Result in A(n)