question 2 (1 point) higher interest rates affect the economy in all the following ways except: a) savers…

question 2 (1 point) higher interest rates affect the economy in all the following ways except: a) savers enjoy more interest income. b) the cost of capital increases for business. c) mortgage payments will decline. d) consumers are discouraged from buying homes and other durable goods.

question 2 (1 point) higher interest rates affect the economy in all the following ways except: a) savers enjoy more interest income. b) the cost of capital increases for business. c) mortgage payments will decline. d) consumers are discouraged from buying homes and other durable goods.

Answer

Brief Explanations:

When interest rates are higher, savers earn more as the return on their savings increases. For businesses, the cost of borrowing (cost of capital) goes up. Higher interest rates also make mortgages more expensive, discouraging consumers from buying homes and other big - ticket durable goods. However, mortgage payments increase with higher interest rates, not decline.

Answer:

C. Mortgage payments will decline.