If business investment increases and other factors remain constant, the economy's interest rate will:
A) rise.
B) remain unchanged.
C) fall.
D) It depends on what industry the investment is in.

Question

Quizplus · Accepted Answer

When business investment increases, the demand for funds in the financial markets typically rises, leading to an increase in the interest rate if other factors remain constant.

If Business Investment Increases and Other Factors Remain Constant, the Economy's