Question

Read what President Bill Clinton said about interest rates in his 1996 State of the Union address.

"Lower interest rates have made it easier for businesses to borrow and to invest and to create new jobs. Lower interest rates have brought down the cost of home mortgages, car payments, and credit card rates to ordinary citizens.”

—President Bill Clinton, January 23, 1996

Which statement best summarizes President Clinton’s explanation of interest rates?

Lower interest rates lead to higher prices for goods.
Lower interest rates do not help the economy improve.
Lower interest rates lead to more spending and more jobs.
Lower interest rates are better for businesses than for citizens.

Answer 1

Lower interest rates lead to more spending and more jobs.

Clinton says lower rates make it easier for businesses to borrow and invest (creating jobs) and reduce costs for consumers (encouraging spending).