If the interest rate rises from 5% to 9%,the number of new businesses will:
A) increase.
B) decrease.
C) remain the same.
D) sharply increase,then level off.

Question

Quizplus · Accepted Answer

When interest rates rise, the cost of borrowing money increases which makes it more difficult for new businesses to secure loans and finance their operations. As a result, the number of new businesses is likely to decrease as the cost of borrowing becomes prohibitively high.

If the Interest Rate Rises from 5% to 9%,the Number