When interest rates rise, potential income for farmers ________ and their future income becomes _______.
A) falls; more valuable
B) rises; more valuable
C) falls; less valuable
D) rises; less valuable

Question

Quizplus · Accepted Answer

When interest rates rise, the cost of borrowing money increases. This makes it more expensive for farmers to invest in their operations, potentially leading to a decrease in income. Additionally, higher interest rates can lead to a stronger currency, making it more difficult for farmers who rely on exports to sell their products at competitive prices. This decrease in potential income and uncertainty surrounding future income can make their future income less valuable.

When Interest Rates Rise, Potential Income for Farmers ________ and Their