Economy, asked by jayashikhaboruah, 8 hours ago

who will gain if expected real interest rate is greater than the real interest rate? ​

Answers

Answered by rachitrandad31
2

The period of low-interest rates makes investment financed by borrowing more attractive. With lower interest rates investment gives a relatively better rate of return because the cost of borrowing is low. At a low rate of investment, more projects will have a rate of return higher than the cost of borrowing

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