A firm's level of investment depends on the market interest rate:
a. only when the firm has to borrow funds to invest in new equipment.
b. only when the firm has to borrow funds to buy stocks and bonds.
c. only when the firm already has sufficient funds and could lend them
d. because the interest rate represents the opportunity cost of investing in capital.
e. because investments are always made with borrowed funds.
d
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Leaving open-access resources open to all people but restricting the intensity of the use of the resources assigns
A) permanent property rights to the government. B) temporary property rights to those people given permission to use the resource. C) property rights to no one since the intensity of the use of the resource has been restricted. D) property rights to everyone since the resource is available to be used by everyone.
A high rate of inflation is likely to cause a:
A. high nominal interest rate. B. low nominal interest rate. C. low rate of growth of nominal GDP. D. decrease in nominal wages.