What happens to investment when interest rates rise 2024?
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Studied at the University of Tokyo, Lives in Tokyo, Japan.
Changes in interest rates affect the public's demand for goods and services and, thus, aggregate investment spending. A decrease in interest rates lowers the cost of borrowing, which encourages businesses to increase investment spending.
2023-05-07 11:14:46
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Julian Brown
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Changes in interest rates affect the public's demand for goods and services and, thus, aggregate investment spending. A decrease in interest rates lowers the cost of borrowing, which encourages businesses to increase investment spending.