Businesses are the principal borrower-spenders in the economy.

Question

Quizplus · Accepted Answer

Businesses often rely on borrowing to finance their operations and investments, and then spend the borrowed funds on various expenses, such as salaries, equipment, inventory, marketing, and so on. As such, they are major drivers of economic activity and employment, and their borrowing and spending patterns can have significant effects on interest rates, inflation, and overall growth.

Businesses Are the Principal Borrower-Spenders in the Economy