How did lower interest rates help economic growth?
A. It created opportunities to reduce personal and government debt.
B. It allowed businesses to increase benefits and wages for employees.
C. It helped people borrow money to use to purchase products and services.
D. It forced the government to increase spending on federal and state projects.
Answer (1)
Lower interest rates stimulate economic growth by making borrowing cheaper for individuals and businesses, leading to increased consumer spending and business investments. This ultimately results in a more active economy. Although it can also impact government spending, the primary benefits come from consumer and business borrowing. ;
