Which factor most directly influences how much money consumers are willing to borrow? A. Influencing economic growth
B. Influencing unemployment rates
C. Changing inflation rates
D. Changing interest rates
Which factor most directly influences how much money consumers are willing to borrow?
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The correct answer is D. Changing interest rates.
Explanation: Interest rates directly affect the cost of borrowing money. When interest rates are low, consumers are more likely to borrow because the overall cost of loans is lower, making it more affordable to take on debt. Conversely, higher interest rates can discourage borrowing because it increases the cost of repayments. This direct relationship makes interest rates the most influential factor in consumers’ willingness to borrow.