Answer: Borrowing will decrease
Explanation:
Interest payments are the extra amount paid when a person borrows money. This is done to compensate the lender for parting with their money for the period of time they did.
Interest payments are based on rates (interest rates) and the higher they are, the more a person will have to pay back when they borrow. If interest rates were to suddenly increase therefore, people would borrow less because they would not want to pay a higher amount when they repay the money.
