question 2 points 2 what is the potential consequence of higher real interest rates on consumer spending for…

question 2 points 2 what is the potential consequence of higher real interest rates on consumer spending for major purchases? increased consumer borrowing for major purchases more consumer confidence and willingness to spend a decrease in consumer borrowing for major purchases no impact on consumer spending

question 2 points 2 what is the potential consequence of higher real interest rates on consumer spending for major purchases? increased consumer borrowing for major purchases more consumer confidence and willingness to spend a decrease in consumer borrowing for major purchases no impact on consumer spending

Answer

Answer:

A decrease in consumer borrowing for major purchases

Brief Explanations:

Higher real - interest rates make borrowing more expensive. Consumers are less likely to take on debt for major purchases like houses or cars, leading to a decrease in consumer borrowing for such purchases.