What are the effects of rising interest rates on individuals and businesses making purchases? Select the correct answers.

Question

a. Individuals are more willing to finance large purchases, but their consumption is not affected.
b. They are more likely to delay making major purchases and save for them with a greater rate of return on their savings.
c. Businesses are more likely to delay major purchases by saving for them using the greater rate of return on their stock investments.
d. They will save less and their purchases will remain unchanged.

Answer 1

b. They are more likely to delay making major purchases and save for them with a greater rate of return on their savings.
c. Businesses are more likely to delay major purchases by saving for them using the greater rate of return on their stock investments.