One reason investment is inversely related to the interest rate is that higher interest rates mean a higher cost of borrowing.

Name: One reason investment is inversely related to the interest rate is that higher interest rates mean a higher cost of borrowing.
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Higher interest rates increase the cost of borrowing, which can reduce the amount of investment undertaken by businesses and individuals because it becomes more expensive to finance new projects or purchases.

One Reason Investment Is Inversely Related to the Interest Rate