Question

There is an increase in interest rate what is likely effect on saving and borrowing?

Answer 1

in saving the the interest make you profit ..but in borrow u have to pay more

Answer 2

Answer:

Interest Rate Changes

Interest rates affect the cost of borrowing money over time, and so lower interest rates make borrowing cheaper - allowing people to spend and invest more freely. Increasing rates, on the other hand makes borrowing more costly and can reign in spending in favor of saving.