Higher interest rates will tend to reduce investment expenditures,other things being equal.

Name: Higher interest rates will tend to reduce investment expenditures,other things being equal.
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Question

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When interest rates increase, the cost of borrowing money for investment purposes also increases, making investment less attractive and reducing investment expenditures. Therefore, higher interest rates tend to reduce investment expenditures, other things being equal.

Higher Interest Rates Will Tend to Reduce Investment Expenditures,other Things