#BinancePizza $BTC Relationship between rate of interest and Investment:

An explanation of how the rate of interest influences the level of investment in the economy. Typically, higher interest rates reduce investment, because higher rates increase the cost of borrowing and require investment to have a higher rate of return to be profitable.

Interest rates and investment

As the real cost of borrowing rises, fewer investment projects are profitable.

If interest rates rise from 5% to 8 %, then we get a fall in the amount of investment