If the interest rate is decreased in an economy it, will -
-
A.
decrease the consumption expenditure in the economy
-
B.
increase the tax collection of the Government
-
C.
increase the investment expenditure in the economy
-
D.
increase the total savings in the economy
Correct Answer:
C. increase the investment expenditure in the economy
Explanation:
Lowering interest rates facilitates capital access for investment spending. However, interest rate fluctuations do not impact government tax revenue or the national fiscal deficit.
Click below to open Discussion & Feedback
0 Issues
Please
login to comment or Report Issues.