Firms discount future profits at the interest rate r because
A) it is the interest rate on their debt.
B) it is the same rate as for households.
C) Ricardian equivalence holds.
D) it has to equal the marginal productivity of capital in equilibrium.

Question

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The Answer of Firms discount future profits at the interest rate r because
A) it is the interest rate on their debt.
B) it is the same rate as for households.
C) Ricardian equivalence holds.
D) it has to equal the marginal productivity of capital in equilibrium.

Firms Discount Future Profits at the Interest Rate R Because