A change in the risk-free rate would be due to all of the following EXCEPT
A) a change in Bank of Canada policy.
B) increased inflationary pressures as the economy grows.
C) an international trade embargo slowing the movement of goods and services.
D) foreign competition in the firm's product market area.

Question

Quizplus · Accepted Answer

Foreign competition in the firm's product market area does not directly affect the risk-free rate, which is influenced by macroeconomic factors like central bank policies, inflation, and international trade conditions.

A Change in the Risk-Free Rate Would Be Due to All