Question

In which economic situation would interest rates decrease?

Most people are saving rather than buying houses
Average families are choosing to invest in new businesses
High consumption is driving a surge in the services sector
Increased job stability is encouraging workers to make big purchases

Answer 1

[AI-generated answer — Bot GPT 3.5]

Interest rates would most likely decrease in the economic situation where most people are saving rather than buying houses. When there is a decrease in demand for borrowing money for mortgages, banks and financial institutions may lower interest rates to encourage borrowing and stimulate economic activity.