ECONOMICS
AGGREGATE SUPPLY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An investment will be more likely if:
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if the interest rates are high
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if interest rates are low
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Confidence in the market is low
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The economy is operating with excess capacity
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Explanation:
Detailed explanation-1: -In summary, when interest rates are lowered: Bond prices rise. Potential stock market gains. Lower interest rates on savings accounts and CDs.
Detailed explanation-2: -Interest rate fluctuations have a substantial effect on the stock market, inflation, and the economy as a whole. 2 Lowering interest rates is the Fed’s most powerful tool to increase investment spending in the U.S. and to attempt to steer the country clear of recessions.
There is 1 question to complete.