Which of the following leads to an increase in real GDP?
A)a decrease in government spending
B)a decrease in the inflation rate in other countries relative to the inflation rate in the United States
C)a decrease in interest rates
D)Households have increasingly pessimistic expectations about future income.

Question

Quizplus · Accepted Answer

A decrease in interest rates typically encourages borrowing and investment, leading to increased spending in the economy, which can result in an increase in real GDP.

Which of the Following Leads to an Increase in Real