question 4 points 1 what is the likely impact of higher real interest rates on business investment spending…

question 4 points 1 what is the likely impact of higher real interest rates on business investment spending? increased business borrowing and investment reduced business confidence and delayed investments no effect on business investment higher stock prices and increased investment

question 4 points 1 what is the likely impact of higher real interest rates on business investment spending? increased business borrowing and investment reduced business confidence and delayed investments no effect on business investment higher stock prices and increased investment

Answer

Answer:

Reduced business confidence and delayed investments

Brief Explanations:

Higher real - interest rates increase the cost of borrowing for businesses. This leads to reduced business confidence as the cost of capital is higher, and businesses are likely to delay investments.