Question

question 6 of 10 how does lowering interest rates by a government’s central bank affect the economy? it makes the economy weaker since it makes loans and credit cards more expensive and increases inflation it helps strengthen the economy since it doesn’t change the way people spend money it helps strengthen the economy since loans and credit cards are cheaper and spending money is easier it helps make the economy weaker since loans and credit cards are cheaper and spending money is more difficult

Explanation:

When a central bank lowers interest rates, borrowing (via loans, credit cards) becomes cheaper. This encourages businesses and individuals to spend/invest more (easier to access funds), which boosts economic activity (strengthens the economy). The other options are incorrect: the first says it weakens the economy (wrong, lower rates stimulate), the second says it doesn't change spending (wrong, it does), the fourth says spending is harder (wrong, cheaper borrowing makes it easier). So the correct option is the one stating it helps strengthen the economy as loans/credit are cheaper and spending is easier.

Answer:

The option "It helps strengthen the economy since loans and credit cards are cheaper and spending money is easier" (the third option in the list of choices, excluding the initially selected incorrect one in the purple box).