Answer :
Low interest rates are advantageous for small businesses because they lower the cost of debt and boost consumer spending.
Businesses should invest in assets and pay off debt during periods of low interest rates to prepare for rising interest rates. Low borrowing rates put more money in consumers' pockets for spending. They might also be more ready to borrow money and make larger purchases as a result, which increase demand for household products. Banks are now able to lend more, which is a bonus for financial organizations. As borrowing costs increase, higher interest rates motivate people to conserve their money and invest. usually causes a slowdown in economic activity. Lower interest rates stimulate the economy and encourage consumers to spend their money on loans and other items.
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