Generally speaking, when interest rates are high, more credit is accessible and the economy tends to grow quickly. True or False?
Understand the Problem
The question is asking whether it's true that high interest rates lead to increased accessibility of credit and faster economic growth. This relates to economic principles regarding interest rates and credit availability.
Answer
False
The final answer is False.
Answer for screen readers
The final answer is False.
More Information
Generally, high interest rates make borrowing more expensive, which tends to slow down economic growth as businesses and consumers are less likely to take out loans.
Tips
A common mistake is assuming that higher interest rates always lead to increased credit availability and economic growth. In reality, they often reduce borrowing.
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