Which factor would likely encourage borrowing among consumers?

Low interest rates would likely encourage borrowing among consumers because they reduce the cost of borrowing. When interest rates are low, the monthly payments on loans become more affordable, making it easier for individuals to take out loans for significant purchases such as homes, cars, or education. Consequently, consumers are more inclined to borrow money because they can do so at a lower financial cost.

Additionally, low-interest rates can stimulate economic activity by encouraging spending and investment, as consumers feel more confident in their ability to repay these loans. This dynamic can lead to increased consumer spending, which further supports economic growth. In contrast, higher interest rates typically discourage borrowing because they increase the costs associated with loans, which can lead to consumers delaying purchases or opting not to borrow altogether.