Economy, asked by kalpanamurugan1810, 7 months ago

what happens when greater interest rate other things being equal

Answers

Answered by teresasingh521

1

Answer:

The argument is as follows: interest rates reflect the cost of borrowing in order to finance investment projects. ... Other things being equal, as interest rates rise, it becomes more expensive to finance investment projects. Thus, as r increases, the number of investment projects planned will decline.

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