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In response to economic restrictions related to the pandemic, the unemployment rate soars, requiring people to...

In response to economic restrictions related to the pandemic, the unemployment rate soars, requiring people to live off of their savings account. This should decrease interest rates.

True or False

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Answer #1

As the employment rate soars, people start using savings to continue living. There will be a fall in investments by people because the savings are falling. This will also result in lower loans. The government will try to improve this situation by offering a lower interest rate to the public. This will improve the borrowing in the market and help pick the economy back.

In response to economic restrictions related to the pandemic, the unemployment rate soars, requiring people to live off of their savings account. This should decrease interest rates.

True

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