baileydaniel612 baileydaniel612

23-02-2017
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In 1 or 2 sentences, explain the effects of lower interest rates on consumption and investments.

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Аноним Аноним

23-02-2017

Lower interest rates make it cheaper to borrow. This tends to encourage spending and investment. This leads to higher aggregate demand and economic growth. This increase in aggregate demand may also cause inflationary pressures.

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