As interest rates decrease, present values __________, and firms will buy __________ capital goods.

Name: As interest rates decrease, present values __________, and firms will buy __________ capital goods.
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As interest rates decrease, the cost of borrowing money becomes cheaper, making it more attractive for firms to invest in capital goods. Therefore, the present value of future cash flows increases, leading firms to buy more capital goods.

As Interest Rates Decrease, Present Values __________, and Firms Will