When the ________ interest rate is low,there are greater incentives to ________ and fewer incentives to ________.
A)nominal;lend;borrow
B)real;lend;borrow
C)real;borrow;lend
D)market;lend;borrow

Question

Quizplus · Accepted Answer

When the real interest rate is low, it becomes cheaper to borrow money, which increases the incentive to borrow, and less attractive to lend money, as the returns on lending are lower.

When the ________ Interest Rate Is Low,there Are Greater Incentives