economy is experiencing higher real interest rates, business firms will most likely be discouraged from investing...

economy is experiencing higher real interest rates, business firms will most likely be discouraged from investing in: stocks

bonds

mutual funds

capital

Solutions

Expert Solution

If economy is experience a higher real interest rate it will give less return from the investing in the the assets like government Bond ,deposits .

Since they will not generate return and it will impact them the most

Stock ,mutual fund all are related from the equity market which is is not dependent on the real interest rate

They all are parts of share market which is totally Independent and work on market sentiments

So the correct answer here is bonds

Rahul Sunny answered 1 year ago

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