Answered

At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

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 appreciate your time. Please come back anytime for the latest information and answers to your questions. We hope this was helpful. Please come back whenever you need more information or answers to your queries. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.