Higher interest rates will increase the cost of borrowing money for investments, which will reduce investment. This contributes to the "crowding out" theory of the problem.
So, (C) is the correct option.
Investment is the commitment of funds toward the acquisition of an asset with the hope that its value would rise over time. Investment necessitates the loss of some current resource, such as time, money, or effort.
In the world of finance, investing is done in order to profit from the asset that is being put up for investment. A gain (profit) or loss realized through the sale of a home or investment, unrealized capital appreciation (or depreciation), investment income like dividends, interest, or rental income, or a combination of capital gain and income may all be included in the return. The return may also include monetary gains or losses as a result of variations in foreign exchange rates.
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