RRaahUPSC
2014 · EconomyPrevious Year Question
Q41.
If the interest rate is decreased in an economy, it will
A. decrease the consumption expenditure in the economy
B. increase the tax collection of the Government
C. increase the investment expenditure in the economy
D. increase the total savings in the economy
Answer

C

Explanation

Decreased interest rates ensure availability of cheaper credit which boosts investment expenditure in the economy.
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