While the Fed continues to hold down interest rates, at some time they will go up. Fed Vice Chairman Stanley Fisher recently said, "If foreign growth is weaker than anticipated, the consequences for the U.S. economy could lead the Fed to remove accommodation more slowly than otherwise." This concern points to low rates for the foreseeable future. At some point the Fed will start increasing rates, which at a minimum will increase borrowing costs.

When rates start to rise, what do you think will happen to business growth in general?






A) Company growth will outpace increased borrowing costs, leading to increased profitability.

B) Company profits will be hurt by rising borrowing costs, potentially leading to increased defaults.

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