Quote by James Buchan
Profits in business always depend on the rate of interest: the higher the interest, the higher the rate of profit required.
Summary
This quote highlights the close relationship between interest rates and business profits. It suggests that the rate of profit businesses demand is directly influenced by the prevailing interest rates. When interest rates are higher, businesses expect higher returns on their investments in order to compensate for the additional cost of borrowing. Conversely, when interest rates are lower, businesses may be content with lower profit margins. This quote presents interest rates as a key determinant of the profitability levels businesses seek to achieve.
Topics
Business
By James Buchan
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