Which of the following situations would result in lowering of interest rates by the banking authority of a country?
A) The economy is slowing down.
B) Inflation is rising rapidly.
C) The level of investment is quite high.
D) The rate of savings is quite low.

Question

Quizplus · Accepted Answer

When an economy is slowing down, lowering interest rates can stimulate borrowing and spending, which can in turn boost economic activity. It can also encourage businesses to invest and expand to help revive the economy.

Which of the Following Situations Would Result in Lowering of Interest