Question

hey , guyssss anwer it
what is meant by higher cost of borrowing?
plssssss answer meeee

Answer 1

The total charge for taking on a debt obligation that can involve interest payments and other financing fees. Theborrowing cost for a business tends to go up when prevailing market interest rates are rising during times of economic expansion and increasedinflation, even if its credit standing remains excellent.

Answer 2

Answer:higher cost of borrowing means a larger part of earnings of borrowers is used to repay the loan

Hence borrowers have less income left for themselves

This effects leads to increasing debt and debt trap

People who might wish to start an enterprise by borrowing may not do so because if the high cost of borrowing

Explanation: