The primary reason that individuals and firms choose to borrow long-term is to

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Borrowing long-term reduces the risk that interest rates will rise before the debt is paid off, which can result in higher total interest payments. This is especially important for large or high-risk investments where interest rates can have a significant impact on profitability. Borrowers may also choose long-term loans to lock in a lower interest rate for a longer period of time, which can lead to lower monthly payments and a more predictable cost of financing.

The Primary Reason That Individuals and Firms Choose to Borrow