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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

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BuyFindarrow_forward

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

How do you explain why investment falls as the interest rate rises?

To determine

Explain the relationship between interest rate and investment.

Explanation

A higher interest rate will decrease the investment because the interest rate is the cost of a borrowing fund. Thus, the higher interest rate will...

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