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20 February, 23:40

As the interest rate increases, the present value of future sums decreases, so firms will find fewer investment projects profitable.

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  1. 21 February, 03:27
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    Answer: True

    Explanation: Interest rate is the percentage amount added on loans borrowed by organizations, business organizations getting loans of high interest rate will find future projects less profitable due to the high cost of Borrowing, the present value of future sums will also decrease following the high cost of Borrowing, with high interest rates business organizations will not want to embark on future projects and investment in order to prevent losses.
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