Soru
12. An increase in the __ interest rate __ investment. a. nominal, increases b. nominal , decreases c. real, increases d. real, decreases
Çözüm
4.7
(243 Oylar)
Kezban
Usta · 5 yıl öğretmeni
Uzman doğrulaması
Cevap
b. nominal, decreases
Daha Fazla
## Step 1The problem is asking us to identify the relationship between interest rates and investment. Interest rates can be either nominal or real. Nominal interest rates are the stated rates, while real interest rates are the nominal rates adjusted for inflation.## Step 2Generally, when interest rates increase, the cost of borrowing money increases. This means that the return on investments that require borrowed money may decrease, leading to a decrease in investment.## Step 3On the other hand, when interest rates decrease, the cost of borrowing money decreases. This means that the return on investments that require borrowed money may increase, leading to an increase in investment.## Step 4Therefore, the relationship between interest rates and investment is generally inverse. This means that as interest rates increase, investment tends to decrease, and vice versa.