Planned investment spending is _____ the interest rate because fewer projects are profitable at higher interest rates. greater than positively related to less than inversely related to

Respuesta :

The relationship between planned investment and interest rates is that investment spending is inversely related to interest rates.

How are investment spending and interest rates related?

Investment spending depends on being able to take loans from financial institutions to sponsor capital projects.

If interests rate are high, there will be less planned investments because the cost of taking a loan will be high. The relationship is there inverse in nature.

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