Lower Interest Rates

Multiple Choice

Lower interest rates

A) increase the quantity of goods and services demanded because they decrease the cost of borrowing money.
B) increase the quantity of goods and services demanded because they increase the income of bankers and other creditors.
C) decrease the quantity of goods and services demanded because they decrease the incomes of all people in the economy.
D) decrease the quantity of goods and services demanded because they raise the costs of building new plants and equipment.