Question

question 1 of 10
low interest rates on loans encourage people to ______.

a. save more
b. spend less
c. spend more
d. save less

Explanation:

In Business (specifically Economics, a subfield of Business), low loan interest rates mean borrowing costs are low. This incentivizes people to take loans (e.g., for buying goods, investing) and thus spend more, as the cost of financing purchases via loans is reduced. Options A and D relate to savings (affected more by savings interest rates), and B is opposite to the effect of low loan rates.

Answer:

C. spend more