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there is negative relationship between interest rate and investments means that as interest rate falls investment rises.And the opposite is true when interest rate rises.

Real interest rate helps to determine the trend of investment in an economy. When the interest rates are high, borrowing becomes quite expensive for the investors so they make less real investment. The high interest rates make it difficult to cover their expenditure because their products becomes less competitive in both the domestic and international market.

On the other hand, if the interest rate is low, more and more investment take place in the economy which result in more production, more employment opportunities and increase in the potential GDP. Thus the real interest rate through their effect on investment improves growth and future living standards of a nation.

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Q: What is the relationship between interest rate and investment?

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A short term interest rate occurs over a short period of time. A long term interest rate occurs over a long period of time.

investment spending

The number of payments is directly related to the interest rate.

There would be a negative relationship, because as GNP increases in a country there is a higher investment in terms of education and family planning, which is a factor that decreases birth rates in a country.

The relationship between Inflation and the Unemployment Rate is known as the Phillips Curve.

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required rate of return is the 'interest' that investors expect from an investment project. coupon rate is the interest that investors receive periodically as a reward from investing in a bond

The average interest rate for investment property loans is between 5 and 8 percent. The interest rate depends on the time it takes until everything is payed back.

There is a positive relationship between interest rate and savings. When interest rate is high people will save more in the banks or invest more so that they can get higher return on it. Higher the interest rate higher will be saving and vice versa.

When interest rates increases currency value appreciates while when interest rate decreases so the currency rates depreciates

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interest rate can be seen as the price of a currency, if it goes up, then the value of investment would rise as well, thus making this currency more desirable comparing to others, leading to an appreciation. in terms of inflation, interest rate is also the price at which investor pay for their loans, so if the interest rate is low, let's say 0, then investors can get their loans at no cost, then loads of loans will be made, leading to more investment, more investment means better company revenue in theory, so higher income, higher price level

The immediate determinants of investment are: (a) the expected rate of return and (b) the real rate of interest.

The Keynesian transmission mechanism is the process whereby changes in the monetary sector (increase or decrease in the interest rate i) have an impact in the real sector, by increasing or decreasing Investment (I), otherwise known as Capital Formation. There is an inverse or negative relationship between the two - this means that as the interest rate i increases, the capital formation or investment in the economy I decreases.

It is a financial function. It returns the present value of an investment based on an interest rate and a constant payment schedule.It is a financial function. It returns the present value of an investment based on an interest rate and a constant payment schedule.It is a financial function. It returns the present value of an investment based on an interest rate and a constant payment schedule.It is a financial function. It returns the present value of an investment based on an interest rate and a constant payment schedule.It is a financial function. It returns the present value of an investment based on an interest rate and a constant payment schedule.It is a financial function. It returns the present value of an investment based on an interest rate and a constant payment schedule.It is a financial function. It returns the present value of an investment based on an interest rate and a constant payment schedule.It is a financial function. It returns the present value of an investment based on an interest rate and a constant payment schedule.It is a financial function. It returns the present value of an investment based on an interest rate and a constant payment schedule.It is a financial function. It returns the present value of an investment based on an interest rate and a constant payment schedule.It is a financial function. It returns the present value of an investment based on an interest rate and a constant payment schedule.

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