Rising interest rates tend to
A)contract the level of economic activity.
B)increase the level of business investment.
C)indicate governmental expansion of the economy.
D)signal the trough of a recessionary market.

Question

Quizplus · Accepted Answer

Rising interest rates tend to increase the cost of borrowing for consumers and businesses, leading to a decrease in spending and investment. This contraction of economic activity can lead to a slowdown or even a recession.

Rising Interest Rates Tend to