Interest rates were high but have finally started to decrease. Explain the possible results on the economy.(1 point)ResponsesThe cost of borrowing and return on savings both increase, which entice consumers to save instead of spending. Demand decreases, which could lead to falling prices for goods.The cost of borrowing and return on savings both increase, which entice consumers to save instead of spending. Demand decreases, which could lead to falling prices for goods.The decreased cost of borrowing and increased return on savings sway customers to both save and spend. The economy grows quickly, resulting in higher inflation rates.The decreased cost of borrowing and increased return on savings sway customers to both save and spend. The economy grows quickly, resulting in higher inflation rates.The decreased cost of borrowing leads to an increase in borrowing. The decreased return on savings discourage consumers to save. Demand increases due to the lower cost of borrowing, which could result in rising prices.The decreased cost of borrowing leads to an increase in borrowing. The decreased return on savings discourage consumers to save. Demand increases due to the lower cost of borrowing, which could result in rising prices.The decreased cost of borrowing and decreased return on savings encourage consumers to save rather than spending. Demand decreases, resulting in rising prices.
The cost of borrowing and return on savings both increase, which entice consumers to save instead of spending. Demand decreases, which could lead to falling prices for goods.
