mhk67 mhk67
  • 09-03-2019
  • Business
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An increase in interest rates should cause level of bussiness investment spending to

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trow1shade
trow1shade trow1shade
  • 09-03-2019

Changes in interest rates affect the public's demand for goods and services and, thus, aggregate investment spending. A decrease in interest rates lowers the cost of borrowing, which encourages businesses to increase investment spending.

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