An increase in interest rates on business loans will change _____ investment spending.

Name: An increase in interest rates on business loans will change _____ investment spending.
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Question

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An increase in interest rates on business loans will affect planned investment spending because it will increase the cost of borrowing, which will reduce the amount of money businesses are willing to invest in new projects. Unplanned investment spending is not directly affected by changes in interest rates.

An Increase in Interest Rates on Business Loans Will Change