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When it comes to retail business, most retail businesses borrow money to buy inventory so if the interest rate goes up and you have to pay more interest on your loan, that increases expenses and decreases profit "All things being equal". However, if expenses go up, the retail prices you pay may also increase.

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Q: How will raising interest rates benefit businesses?
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raising of interest rates


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Fixed deposit interest rates is a guaranteed interest rate for the entire term of an investment. They allow for the customer to earn high interest rates.


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Interest rates affect businesses?

thor bafor nam kitha enayetor baf


What happens to consumer and businesses spending when the interest rates go up?

They both increase


How interest rate affect business?

Interest rates affect the value of money. Businesses depend on money. So when money has a higher value, businesses are happy. When money has a lower value, businesses are not so happy.


How can interest rate affect business?

Interest rates affect the value of money. Businesses depend on money. So when money has a higher value, businesses are happy. When money has a lower value, businesses are not so happy.


How do interest rates affect businesses?

Interst rates remove some of the profits that are made in businsses that make loans to opperate. Interest rates also make less money available to people that are paying of houses resulting in their not purchacing as much from businesses. this also flows on to renters of homes. the higher the rates the lower the economic activity.


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