What is the relation between rate of interest and investment ?
Answers
Answered by
0
Answer:
The level of investment in the economy is sensitive to changes in the prevailing interest rate. In general, if interest rates are high, investment decreases. Conversely, if interest rates are low, investment increases. This inverse correlation is key in understanding the relationship between the interest rate and investment. Relationship Between Interest Rate & Investment. The level of investment in the economy is sensitive to changes in the prevailing interest rate. In general, if interest rates are high, investment decreases. Conversely, if interest rates are low, investment increases.
Similar questions