In three to four sentences, explain the effects of lower interest rates on consumption and investments.

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03-05-2017
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In three to four sentences, explain the effects of lower interest rates on consumption and investments.

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BlueSky06 BlueSky06 · Answer 1 · 2017-05-16T22:47:28+02:00

BlueSky06 BlueSky06

16-05-2017

If the interest rates of for example bank loans are lowered compared to how much they are now, many will opt to borrow money for investment. The availability of the goods and services will then lead to increase in consumer's consumption.

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