O-LevelEconomicsGovernment and the macroeconomy2281/11 · May/June 2022 · Q181 Mark
Why would an increase in the interest rate potentially lead to lower inflation?
AConsumers will be more willing to save when interest rates are high.
BConsumers will be more willing to spend when interest rates are high.
CProducers will be more willing to borrow from banks when interest rates are high.
DProducers will be more willing to invest when interest rates are high.
✓ Correct answer
A: Consumers will be more willing to save when interest rates are high.
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