The level of interest rates can determine the level of demand for a company's products.

Question

Quizplus · Accepted Answer

When interest rates are high, borrowing costs increase, which can lead to a decrease in consumer spending and a decrease in demand for products. On the other hand, when interest rates are low, borrowing costs decrease, which can lead to an increase in consumer spending and an increase in demand for products. Therefore, the level of interest rates can determine the level of demand for a company's products.

The Level of Interest Rates Can Determine the Level of Demand