THE EFFECT OF INTEREST RATE ON INVESTMENT AND MONEY DEMAND IN NIGERIAN ECONOMY

ABSTRACT

The research work examined the Effect of Interest Rate on Investment and Money Demand in Nigerian Economy for the year 2005  –  2014. The research adopted ex-post facts research design. Data for this study were mainly collected from secondary sources and were garthered through Central Bank of Nigeria (CBN) and Federal Office of Statistics (FOS).

An econometric model specification was then built and SPSS 20.0 software was used in computing the data regression analysis. Findings of the study were drawn and indicates that interest rate has significant impact on investment decision and that there is significant relationship between Interest rate and money demand

The research study was concluded with a detailed discussion and recommendations based on the findings.

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