◈ Oracle PrepSign Up Free
O-LevelEconomicsMicroeconomic decision makers2281/11 · May/June 2025 · Q111 Mark

If interest rates fall, what will be the most likely effect on saving and borrowing?

Asaving: decrease, borrowing: decrease
Bsaving: decrease, borrowing: increase
Csaving: increase, borrowing: decrease
Dsaving: increase, borrowing: increase

✓ Correct answer

B: saving: decrease, borrowing: increase

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Microeconomic decision makers and see which topics are most likely to come up next.

Sign up free →

About this question

Topic
Microeconomic decision makers, O-Level Economics (syllabus 2281). Multiple choice, 1 mark.
Source
O-Level Economics, May/June 2025 Paper 1 Variant 1, question 11.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Economics questions

Microeconomic decision makersMay/June 20111m

A major computer company announced that its profits had fallen below the level predicted. What might have caused this?

Microeconomic decision makersMay/June 20121m

What is likely to cause wages in an occupation to be high?

Microeconomic decision makersMay/June 20121m

A trade union negotiates a basic weekly wage for its members with all employers in an industry. In addition to the ba…

The allocation of resourcesMay/June 20111m

Which action by the operators of an airport directly reduces external costs?

The allocation of resourcesMay/June 20111m

Which change must occur when a firm starts to experience diseconomies of scale?

The allocation of resourcesMay/June 20111m

If a firm increases its output in the short run, what will happen to its average fixed cost (AFC)?

← Browse all past-paper questions

© 2026 Oracle Prep