Answered

Westonci.ca is the ultimate Q&A platform, offering detailed and reliable answers from a knowledgeable community. Connect with professionals on our platform to receive accurate answers to your questions quickly and efficiently. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

If interest rates rise, Group of answer choices households are willing to borrow more money because their rates of return have increased. foreign entities are willing to borrow more money because their rates of return have increased. firms are willing to borrow less money because their costs of borrowing has increased. firms are willing to borrow more money because their rates of return have increased. it must mean that inflation has decreased because nominal rates have increased.

Sagot :

Parrain

Answer: firms are willing to borrow less money because their costs of borrowing has increased.

Explanation:

Cost of borrowing refers to the interest rates that a borrower will have to pay on the loan they have borrowed.

If interest rates increase in the economy therefore, the cost of borrowing will increase and companies aim to keep costs as low as possible. This will lead to them borrowing less money so as not to incur the increase interest charges.

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.