If a business makes the determination that an investment makes sense at the current interest rate but before they can act the interest rates fall
A)they will have to recalculate whether it still makes sense.
B)it will only make the situation better so they will clearly make the investment.
C)it will cause them to not make the investment regardless of the decrease.
D)they will go ahead with the investment because interest rates have nothing to do with whether an investment makes sense.

Question

Quizplus · Accepted Answer

When interest rates fall, the cost of borrowing decreases, making investments more attractive as the cost of financing them is lower. This generally improves the situation for making the investment.

If a Business Makes the Determination That an Investment Makes