answersLogoWhite

0

The effect that low interest rates have on business investments is a low return. The low return will affect the profits of a business. It will also slow down business investments.

User Avatar

Wiki User

9y ago

What else can I help you with?

Related Questions

Which are three of the four main economic variables?

external shocks business investment, and interest rates


What is the crowding-out effect?

A situation when increased interest rates lead to a reduction in private investment spending such that it dampens the initial increase of total investment spending is called crowding out effect


How do low interest rates encourage business investment?

Low interest rates encourage business investment by reducing the cost of borrowing money. When interest rates are low, businesses can access funds at a lower cost, making it more attractive for them to invest in new projects, expand operations, or purchase equipment. This can stimulate economic growth and create job opportunities.


What is the effect of interset rate on the architects and the building process?

Interest rates for loans regarding the entire construction business effect the cost of construction. Generally speaking, interest rates do not impact the salaries of architects.


What is the crowding out?

A situation when increased interest rates lead to a reduction in private investment spending such that it dampens the initial increase of total investment spending is called crowding out effect


What is the benefit of fixed deposit interest rates?

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.


What are the best financial investment when interest rates rise?

TIPs


Why did the Federal Reserve increase interest rates?

The Federal Reserve increased interest rates to control inflation and encourage saving and investment.


Why did the Federal Reserve raise interest rates?

The Federal Reserve raised interest rates to control inflation and encourage saving and investment.


What are the determinants of investment?

1. Revenue: Economic Growth and Business Cycle 2. Cost: Interest rates and Taxes 3. Expectation: Stable economic and political condition of any country.


Why does monetary policy more directly influence business and individuals than fiscal policy does?

on A+: because of its effect on interest rates :))


Why does monetary policy more directly influence business and individuals than fiscal policy?

on A+: because of its effect on interest rates :))