Question

Which factor most directly influences how much money consumers are willing to borrow?
1.influencing economic growth
2.influencing unemployment rates
3.changing inflation rates
4.changing interest rates

Answer 1

The answer is D - changing interest rates

Answer 2

Correct answer choice is :

D) Changing interest rates

Explanation:

Central banks change the money stock to try to handle the economy and control expansion.  This causes interest rates lower because more money is accessible to bankers and borrowers alike. If the supply of currency is reduced by withdrawing money from banks, financial policy is contracted which makes interest rates to rise.