Question

What effects do low interest rates have on the economy?

Answer 1

When consumers pay less in interest, this gives them more money to spend which can create a ripple effect of increased throughout the economy. Business and farmers also benefit from lower interest rates, as it encourages them to make large equipment purchases due to the low cost of borrowing.

Step-by-step explanation:

Answer 2

Consumers pay less in interest, meaning more money to spend. It creates a ripple effect of increased spending throughout the economy