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Q: When interests rates are low spending decreases true or false?
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Related questions

Relationship between increases and decreases in employment consumer spending and money supply?

Typically, a decrease in employment rates leads to fewer disposable income, and less spending. When the employment rates are high, consumers tend to spend more.


How does the federal reserve influence local economics?

The Federal Reserve impacts local economics by impacting local loan rates. The overall movement of rates increases or decreases disposable income and the resultant spending.


When the federal reserve decreases the money supply it generally does by selling bonds true or false?

It is true that when the Federal Reserve decreases the money supply it generally does by selling bonds. When the Federal Reserve sells bonds it pushes prices down and increases rates.


How birth rates and death rates influence the size of a population?

If birth rates exceed death rates, the population increases proportionally. If death rates exceed birth rates, the population decreases.


What does fiscal policy involve?

spending levels and tax rates to monitor and influence a nation's economy


What is call when the birthrates are less than the death rates?

Population decreases


What does crowding out mean?

Increased government spending results in higher interest rates which puts downward pressure on investment spending.


Why would the Fed decrease money supply?

If the Fed wants to slow the rate of consumer and investor spending, it would restrain the growth of money and credit. The decrease in money available in the economy leads to a decrease in investment and spending as the availability of capital decreases and it becomes more expensive to obtain. This limiting of access to capital slows down economic growth as investment decreases.


Is a reduction in interest rates likely to affect spending on pizza?

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When does the government maintain spending and taxes at their current rates?

when economy is stable


What happens to the rates of dissolution as the temperature is increased in a gas solution?

The rate decreases.


An increase in interest rates affects aggregate demand by?

An increase in interest rates decreases the aggregate demand shifting the curve to the left.