CIPS Exam A6 Topic 2 Question 73 Discussion

Actual exam question for CIPS's A6 exam

Question #: 73
Topic #: 2

[All A6 Questions]

Which of the following is the most likely consequence of government decreasing interest rates? (2 marks)

APeople spend more

BPeople spend less

CThe economy slows down

DThe cost of borrowing goes up

Show Suggested Answer

Suggested Answer: A

by Florinda at Mar 22, 2025, 09:29 AM

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Ciara

9 days ago

That's a good point, Thea. So maybe the answer is actually A) People spend more.

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Thea

10 days ago

But wouldn't people save more instead of spending, since they earn less on their savings?

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Nancey

11 days ago

I agree with Lakeesha, because lower interest rates make borrowing cheaper.

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Lakeesha

12 days ago

I think the answer is A) People spend more.

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Audry

17 days ago

Haha, the real question is, who actually reads the textbook? Just pick the one that sounds the most logical, and you're golden!

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Irma

22 days ago

I'm not entirely convinced. Couldn't lower interest rates also lead to the economy slowing down if it encourages too much borrowing and spending?

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Glory

13 days ago

B) People spend less

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Lamar

18 days ago

A) People spend more

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Devon

29 days ago

I'm pretty sure the correct answer is A. When interest rates go down, borrowing becomes cheaper, so consumers and businesses are more likely to spend more.

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Malika

1 months ago

Well, duh! Lower interest rates mean people can borrow money more easily, so they're obviously going to spend more. It's basic economics, people!

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Carlota

5 days ago

A) People spend more

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Noah

21 days ago

A) People spend more

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Corrina

22 days ago

B) People spend less

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Rebbecca

26 days ago

A) People spend more

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