Explain the statement that business investment depends inversely on the rate of interest while...

Question:

Explain the statement that business investment depends inversely on the rate of interest while personal saving depends directly on the rate of interest.

Business Investment:

The investment process contributes to the development of a country's economy. It tends to lead to increased productivity, as well as the creation of employment opportunities, which ultimately aid in solving various economic issues, such as a lack of spending within an economy.

Answer and Explanation:

Business investment depends inversely on the rate of interest. This is why the statement is true.

This answer can be explained by the fact that...

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What is an Investment? - Definition & Overview

from Corporate Finance: Help & Review

Chapter 2 / Lesson 6
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