In the economy as a whole, lower interest rates are likely to ________ investment and higher interest rates are likely to ________ investment.

Name: In the economy as a whole, lower interest rates are likely to ________ investment and higher interest rates are likely to ________ investment.
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Question

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Lower interest rates reduce the cost of borrowing, encouraging businesses and individuals to invest more. Conversely, higher interest rates increase borrowing costs, which can slow down investment.

In the Economy as a Whole, Lower Interest Rates Are