Suppose there is an increase in the confidence that workers have in their future employment and income. This will cause
A)an increase in borrowing which will decrease interest rates.
B)an increase in saving which will decrease interest rates.
C)an increase in borrowing which will increase interest rates.
D)an increase in saving which will increase interest rates.

Question

Quizplus · Accepted Answer

When workers are more confident about their future employment and income, they are more likely to borrow and spend more, leading to increased demand for loans, which can drive up interest rates.

Suppose There Is an Increase in the Confidence That Workers