Answered

Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Suppose that consumption decreases. What is the effect on investment and real interest rate? Analyze using graphs. Briefly describe.

Sagot :

abundoariane93

Answer:

Interest rates and investment

If interest rates are increased then it will tend to discourage investment because investment has a higher opportunity cost. With higher rates, it is more expensive to borrow money from a bank. Saving money in a bank gives a higher rate of return.

View image abundoariane93
We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Your questions are important to us at Westonci.ca. Visit again for expert answers and reliable information.