Question

How do changes in interest rates influence the cost of borrowing?

Select all that apply.
A). Decreases in interest rates reduce the cost of borrowing.
B). Increases in interest rates increase the cost of borrowing.
C). Decreases in interest rates increase the cost of borrowing.
D). Increases in interest rates reduce the cost of borrowing.
Increases in interest rates reduce the cost of borrowing.

Answer 1

A,B

The interest rate is the cost of borrowing.