One economic method through which government debt can displace private investment is the higher interest rate. Lower private capital investment is typically associated with higher interest rates.
How would you define interest?
The fee you pay when borrow the money or the fee you pay to lend money is called interest. The most common way to represent interest is as a yearly percentage of the loan amount. The interest rate just on loan is known as this percentage.
Which 4 interest categories are there?
Top 7 Interest Categories
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