As real rates of interest increase in the economy, real investment spending increases.

Name: As real rates of interest increase in the economy, real investment spending increases.
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Question

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The opposite is true. As real rates of interest increase, borrowing becomes more expensive, leading to a decrease in real investment spending. Conversely, when real rates of interest decrease, borrowing is cheaper and real investment spending increases.

As Real Rates of Interest Increase in the Economy, Real