Which of the following is likely to lead to higher interest rates?
A) a less positive economic outlook
B) the end of a government program that provides taxpayers with additional incentives to invest in their retirement plans
C) a decrease in asset prices
D) a decrease in firms' expectations about the economy

Question

Quizplus · Accepted Answer

The end of a government program that provides incentives to invest in retirement plans could reduce the supply of savings, leading to higher interest rates as the demand for funds remains unchanged or increases.

Which of the Following Is Likely to Lead to Higher