Question

what happens,when greater the interest rate other things being equal?

Answer 1

• 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.

Answer 2

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.

Explanation:

Trust me you'll never go wrong because of me..

Hope it helps.. Pls mark as the brainliest to appreciate my efforts if it did help!!