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As Interest Rates Increase What Happens to Planned Investment and Aggregate

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Essay

As interest rates increase what happens to planned investment and aggregate expenditure?


Definitions:

Equity Worth

The value of a shareholder's ownership interest in a company, often reflected in the price of the company's stock.

Market Value

The current market rate at which an asset or service can be traded.

Book Value

The net value of a company's assets minus its liabilities, representing the equity value of a company on its balance sheet.

Reverse Stock Split

A corporate action in which a company reduces the number of its existing shares to increase the share price without changing the total market capitalization.

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