{"id":1969,"date":"2024-03-30T14:56:53","date_gmt":"2024-03-30T09:26:53","guid":{"rendered":"https:\/\/lotusarise.com\/qna\/?p=1969"},"modified":"2024-04-03T07:05:55","modified_gmt":"2024-04-03T01:35:55","slug":"q-if-the-interest-rate-is-decreased-in-an-economy-it-will","status":"publish","type":"post","link":"https:\/\/lotusarise.com\/qna\/upsc\/q-if-the-interest-rate-is-decreased-in-an-economy-it-will","title":{"rendered":"Q. If the interest rate is decreased in an economy, it will"},"content":{"rendered":"\n<ul class=\"mcq wp-block-list\">\n<li>decrease the consumption expenditure in the economy<\/li>\n\n\n\n<li>increase the tax collection of the Government<\/li>\n\n\n\n<li>increase the investment expenditure in the economy<\/li>\n\n\n\n<li>increase the total savings in the economy<\/li>\n<\/ul>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong>Answer: (c) increase the investment expenditure in the economy<\/strong><\/p>\n<\/blockquote>\n\n\n\n<h5 class=\"wp-block-heading\" id=\"notes-hd-6607c8f7e95f7\">Notes:<\/h5>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If the interest rate is decreased in an economy,&nbsp;<strong>people will deposit less money in the banks<\/strong>&nbsp;since they would not get high returns and borrow more money with a low-interest rate, hence&nbsp;<strong>money supply in the economy will increase<\/strong>.<\/li>\n\n\n\n<li>Decrease in interest rate in an economy will increase the money supply, thus<strong>&nbsp;increasing the investment expenditure<\/strong>. With low interest rates, the&nbsp;<strong>banks will have more leverage to lend money to businesses<\/strong>&nbsp;and&nbsp;<strong>to citizens to purchase household items or to invest in productive things.<\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Answer: (c) increase the investment expenditure in the economy Notes:<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_kad_blocks_custom_css":"","_kad_blocks_head_custom_js":"","_kad_blocks_body_custom_js":"","_kad_blocks_footer_custom_js":"","_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"_kad_post_classname":"","footnotes":""},"categories":[1,3],"tags":[38],"years":[59],"class_list":["post-1969","post","type-post","status-publish","format-standard","hentry","category-upsc","category-prelims","tag-indian-economy","years-59"],"acf":[],"taxonomy_info":{"category":[{"value":1,"label":"UPSC"},{"value":3,"label":"Prelims"}],"post_tag":[{"value":38,"label":"Indian Economy"}],"years":[{"value":59,"label":"2014"}]},"featured_image_src_large":false,"author_info":{"display_name":"LotusArise","author_link":"https:\/\/lotusarise.com\/qna\/author\/team-lotusarise"},"comment_info":0,"category_info":[{"term_id":1,"name":"UPSC","slug":"upsc","term_group":0,"term_taxonomy_id":1,"taxonomy":"category","description":"","parent":0,"count":1269,"filter":"raw","cat_ID":1,"category_count":1269,"category_description":"","cat_name":"UPSC","category_nicename":"upsc","category_parent":0},{"term_id":3,"name":"Prelims","slug":"prelims","term_group":0,"term_taxonomy_id":3,"taxonomy":"category","description":"","parent":1,"count":1251,"filter":"raw","cat_ID":3,"category_count":1251,"category_description":"","cat_name":"Prelims","category_nicename":"prelims","category_parent":1}],"tag_info":[{"term_id":38,"name":"Indian Economy","slug":"indian-economy","term_group":0,"term_taxonomy_id":38,"taxonomy":"post_tag","description":"","parent":0,"count":225,"filter":"raw"}],"_links":{"self":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1969","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/comments?post=1969"}],"version-history":[{"count":0,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/posts\/1969\/revisions"}],"wp:attachment":[{"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/media?parent=1969"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/categories?post=1969"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/tags?post=1969"},{"taxonomy":"years","embeddable":true,"href":"https:\/\/lotusarise.com\/qna\/wp-json\/wp\/v2\/years?post=1969"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}