Macroeconomic factors that influence interest rate levels Aa Apart from risk components, several macroeconomic factors-such as Federal Reserve (the Fed) policy, federal budget deficit or surplus, international factors, and levels of business activity influence interest rates. Based on your understanding of the impact of macroeconomic factors, identify which of the following statements are true or false: Foreign investments fuel growth in a country. However, this investment is based on factors that affect the business environment and increase riskiness, such as macroeconomic policies, political changes, labor issues, tax rates, and regulations.
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