Economy, asked by vandanakatiki, 11 months ago

Increase in deposit rate results in increase in investment ​

Answers

Answered by chakraborttymahak78
1

Answer:

By setting the federal funds rate, the Fed indirectly adjusts long-term interest rates, which increases investment spending and eventually affects employment, output and inflation. ... A decrease in interest rates lowers the cost of borrowing, which encourages businesses to increase investment spending.

Explanation:

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