1. * 1. Following statements is true regarding the interest rate EXCEPT for: When the government expenditure is more than the government income, this will lead to a decrease in the interest rate. An increase in the economic growth will put an upward pressure on the interest rate due to the increase in the demand for loans. When the inflation rate is high, this will lead to an increase in the interest rate. An increase in the money supply by the government will put a downward pressure on the interest rate