1) Which of the following is the most likely explanation of Japan's very low market interest rates in the early 2000s?

A) expected deflation

B) an increasing budget deficit

C) an increasing trade surplus

D) an increase in corporate profits

Answer: A

Why lower interest rate cause deflation in this question?

From Investopedia, 'In general, as interest rates are reduced, more people are able to borrow more money. The result is that consumers have more money to spend, causing the economy to grow and inflation to increase.' That makes me confused...