Sabri Bulut

Currently a 3rd year BSc Economics student at City, University of London.

73Students helped
1Questions answered
£20Per hour
Economics

Asked by King · 5 years ago

How would a rise in interest rates cause a fall in AD (include investment)?

Interest rates can be defined in the following two ways. Interest rates are the cost of borrowing for an economic agent (i.e the price of making an investment). Also interest rates are the benefit of saving(that is the payment made to an agent for putting money into a bank account). When interest rates rise, the cost of borrowing also rises, meaning that an economic agent will pay a higher price f... more

Sabri Bulut

Currently a 3rd year BSc Economics student at City, University of London.

73Students helped
1Questions answered
£20Per hour