Question

High interest rates on loans encourage people to

A. Spend less

B. Spend more

C. Save less

D. Save more

Answer 1

high interest rates does not encourage spending i.e spend less ( A )

Step-by-step explanation:

High interest rates on loans makes it difficult for people to service loans comfortably, because it comes with a huge cost.leaving people with less money to spend and it also discourages borrowing, while taking out loans with smaller interest will encourage more spending and more borrowing