A decrease in the interest rate will cause an increase in investment spending.

Name: A decrease in the interest rate will cause an increase in investment spending.
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Question

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When interest rates decrease, the cost of borrowing money decreases, making it cheaper for businesses to fund investment projects. This leads to an increase in investment spending as businesses are more likely to take advantage of the lower interest rates to expand their operations.

A Decrease in the Interest Rate Will Cause an Increase