Typically,when interest rates rise,
A)businesses are willing to borrow more money.
B)consumers are willing to borrow more.
C)businesses are less likely to expand.
D)businesses make bigger capital investments.

Question

Quizplus · Accepted Answer

When interest rates rise, businesses become less likely to expand because borrowing becomes more expensive. They tend to slow down their investments and delay expansion plans until interest rates come back down. Consumers may also become less willing to borrow as borrowing costs increase.

Typically,when Interest Rates Rise