The returns from productive capital investment are determined by interest rates.

Question

Quizplus · Accepted Answer

The returns from productive capital investment are primarily determined by the productivity and profitability of the investment itself, not just by interest rates. Interest rates can influence the cost of borrowing money for investment, but the actual returns are more directly related to the success and efficiency of the investment in generating income or value.

The Returns from Productive Capital Investment Are Determined by Interest