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how does a high rate of interest affect the likelihood that people will spend more in the present to buy more expensive non-tradtional heating systems such as solar panels to benefit themselves in the future or to benefit future generations ? a high interest rate increases the likelihood because the rate of return is so high. a high interest rate has no impact on the situation; there is no impact on average rate of return. a high interest rate reduces the likelihood of the investment, because so the money could be invested elsewhere for a high rate of return. a high interest rate increases the likelihood because the marginal return is changed.

Respuesta :

A high interest rate has no impact on the situation.

Consumer spending or investing in the costly non-traditional heating structures inside the present or in destiny will have no adjustments however a decrease common go back charge. based totally on client behavior it's miles highly not going that purchasers could spend extra thinking about the reality that the hobby fee is high.

But in destiny, the call for for the equal solar heating system would be lower to be able to cause a decrease interest fee, In that situation, the customer can be inclined to spend in any other case it's far less in all likelihood as the hobby price is high or low has a very negligible effect on the scenario like this.

The interest rate is the quantity a lender fees a borrower and is a percent of the important—the quantity loaned. The interest price on a loan is typically referred to on an annual basis called the annual percent charge (APR).

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