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Sagot :
If the market interest rate increases, the capital borrowed decreases.
What is the market interest rate?
Market interest rate is the cost of borrowing capital from lenders. If the market interest rate increases, it indicates an increase in the general price levels (inflation). As a result the real value of the money borrowed would decline. The lender loses and the borrower gains.
To learn more about interest, please check: https://brainly.com/question/26367706
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