How do low interest rates affect a business?
A) Firms tend to defer investments until rates rise.
B) Firms can easily borrow money to finance future growth.
C) Consumer demand slows down.
D) Business credit is harder to obtain.

Question

Quizplus · Accepted Answer

During periods of low interest rates, firms can easily borrow money to finance future growth. Borrowing at lower rates reduces the cost of capital and enhances a firm's competitiveness.

How Do Low Interest Rates Affect a Business