Question

4) Typically, increasing interest rates 4) A) encourages corporate expansion. B) discourages individuals from saving. C) discourages corporate investments. D) encourages corporate borrowing. E) none of the above.

Answer 1

C) discourages corporate investments.

Step-by-step explanation:

Option A is incorrect because increasing interest rate discourages corporate expansion instead of encourages.

Option B is false. As interest rate increases, it encourages the individuals to save more.

Option D is wrong because corporation cannot borrow money if the interest rate increases.

Option C is correct because increasing interest rate discourages corporations to invest more.