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Aksel asked in Social ScienceEconomics · 9 years ago

Economic TRUE/FALSE/UNCERTAIN?

A rise in the interest rate reduces investment because firms become less optimistic

about the future.

1 Answer

Relevance
  • 9 years ago
    Favorite Answer

    False. A rise in interest rates moves money to short-term investments from long-term until the rise nears its plateau.

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