Increasing interest rates.
A. discourage corporate investments
B. discourage individuals from saving
C. encourage corporate expansion
D. encourage corporate borrowing
Answer: Option A
Solution (By Examveda Team)
Increasing interest rates discourage corporate investments. Higher interest rates tend to moderate economic growth. They increase the cost of borrowing, reduce disposable income and therefore limit the growth in consumer spending. Higher interest rates tend to reduce the rate of economic growth and inflationary pressures.This Question Belongs to Management >> International Finance And Treasury
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