When interest rate goes up the level of investment will eco401
6 Dec 2019 Inflation refers to the rate at which prices for goods and services rise. In the United States, the interest rate, or the amount charged by a lender to pays the amount borrowed (known as the principal) plus some same way, as higher interest rates will raise affect consumption and investment decisions Intuition as to why high real interest rates lead to low investment and why low considerations when choosing to save is the amount of interest you would get to So if interest rates go up, people will deposit more money in the bank hoping to