Buying a product in one market and reselling it in another market at a higher price is referred to as

If a firm wants to borrow $10 million and the real interest rate increases from 5 percent to 6 percent, then the cost of the investment has increased by

A) $6 million per year. B) $100,000 per year. C) $1 million per year. D) $600,000 per year. E) nothing because the real interest rate is the return the firm will earn on its investment.

Explain the relationship between the real interest rate and investment demand. Compare that relationship to the relationship between expected profit and investment demand

What will be an ideal response?