What sort of economic activity do high interest rates encourage?(1 point) Responses incentivizing households to save money incentivizing households to save money disincentivizing households to save money disincentivizing households to save money incentivizing households to borrow money incentivizing households to borrow money disincentivizing banks to loan money
High interest rates encourage disincentivizing households to borrow money and incentivize households to save money. This is because borrowing money becomes more expensive with high interest rates, so individuals are more likely to save their money instead. Additionally, high interest rates may also disincentivize banks from loaning money as the cost of borrowing increases.
