The Notion of Business Investment Being Related to Interest Rates

question 116

Multiple Choice

The notion of business investment being related to interest rates is shown when interest rates are

• A)higher, more projects (where businesses borrow capital to start new lines of business)are profitable.
• B)higher, fewer projects (where businesses borrow capital to start new lines of business)are profitable.
• C)higher, people are less likely to buy expensive goods on installments.
• D)higher, people are more likely to buy expensive goods on installments.

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