Lately I have been seeing that the rising interest rates are the cause for major tech layoffs and also for the drop in Startup Funding (not including AI). But I cannot grasp why that happens and the effects
In: Economics
They are the extra percentage of money you have to pay back when getting a loan.
You can think of it as “the price of borrowing money”.
If this price, the interest rates are high, companies, investors and people are going to be more hesitant of taking out a loan or take out smaller loans, so extra employees or some other investment they planned on covering with a loan, get canned.
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