When interest rates rise how might business and consumers change their economic behavior?

When interest rates rise, borrowing costs increase, prompting businesses and consumers to reduce spending and investment. Companies may delay expansion plans or cut back on hiring, while consumers might postpone large purchases, such as homes and cars, due to higher financing costs. Additionally, higher interest rates can lead to increased savings as individuals seek to take advantage of better returns on savings accounts, further dampening consumption. Overall, such changes can slow down economic growth.