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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Irma

9 hours 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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Devon

8 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

14 days 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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Corrina

9 hours ago

B) People spend less

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Rebbecca

5 days ago

A) People spend more

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