Big Tech Firms Turn to Borrowing

Answer the following questions to check your understanding of the story.

Does borrowing to build a greater number of AI data centers respond to the real interest rate or the nominal interest rate?

Borrowing to build a greater number of AI data centers responds to ___________.

a) both the real interest rate and the nominal interest rate

b) the real interest rate

c) neither the real interest rate nor the nominal interest rate

d) the nominal interest rate

What was the real interest rate on business borrowing in August 2025?

a) 2.45%

b) 8.25%

c) 2.9%

d) 5.35%

If a high real interest rate leads to decreased borrowing, why are AI tech firms borrowing more?

AI tech firms are borrowing more because ______________.

a) they are very likely to be able to repay their loans

b) the real interest rate is low

c) the inflation rate is high

d) their expected profit exceeds the real interest rate

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