In making an investment decision,a business firm is most interested in the:

Question

Quizplus · Accepted Answer

A business firm is most interested in the real interest rate, which is adjusted for inflation and provides a more accurate measure of the true cost of borrowing. The nominal interest rate does not take inflation into account and can be misleading. The other options, such as the difference between nominal and real interest rates and the future supply of loanable funds, may be relevant factors in making an investment decision but are not the most important consideration.

In Making an Investment Decision,a Business Firm Is Most Interested