decreased interest rates to reverse the trend of inflation (too much money) would impact consumer spending by?

Posted on March 29, 2010 by admin

making them spend less or more money?
also, how would it impact business spending?

Decreasing interest rates would only encourage borrowers to borrow more money, not necessarily making consumers spend more. Look at where interest rates are today, and at the same time consumer confidence (spending) is down.

Businesses would do the same thing, borrow more money for the business.

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2 Responses to decreased interest rates to reverse the trend of inflation (too much money) would impact consumer spending by?

  1. always under siege says:
    March 29, 2010 at 5:59 am

    Decreased interest rates would encourage consumers to spend more money.

    Business expenditures aren’t swayed as much by interest rates as they are normally consistent.
    References :

  2. $so fresh so clean$ says:
    March 29, 2010 at 6:28 am

    Decreasing interest rates would only encourage borrowers to borrow more money, not necessarily making consumers spend more. Look at where interest rates are today, and at the same time consumer confidence (spending) is down.

    Businesses would do the same thing, borrow more money for the business.
    References :