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DerKrebs [107]
3 years ago
5

An ______ in the interest rate (r), ceteris paribus, will cause planned investment to ______.

Business
1 answer:
faltersainse [42]3 years ago
7 0

Answer:

An increase in the interest rate (r), ceteris paribus, will cause planned investment to decrease.

Explanation:

An increase in the interest rates determined by the Federal Reserve would imply that the American financial system would pay larger sums of money for direct investments in banks or bonds, which would stop capital investment outside the public financial system, that is, in stocks. private, real estate investments, etc., since money would be invested at a higher profit in safer sectors of the market.

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