Which of the following leads to an increase real GDP?
A) a decrease in government spending
B) a decrease in the inflation rate in other countries, relative to the inflation in the United States
C) a decrease in interest rates
D) households have increasingly pessimistic expectations about future income

Question

Quizplus · Accepted Answer

A decrease in interest rates typically encourages borrowing and spending by businesses and consumers, which can lead to an increase in real GDP.

Which of the Following Leads to an Increase Real GDP