When investment is financed through borrowing,an increase in the interest rate will lead to:
A) a fall in investment as the supply of funds declines at higher interest rates.
B) a fall in investment as the rate of return on certain projects will be below the interest rate.
C) an increase in investment as the value of present spending will be higher.
D) an increase in investment as the net marginal productivity will increase.
Correct Answer:
Verified
Q57: Use the following figure to answer the
Q58: The purpose of unions formed by workers
Q59: Which of the following correctly supports the
Q60: In a labor market with an effective
Q61: What is meant by the net marginal
Q63: Consider a machine that lasts two years
Q64: The aggregate investment demand curve slopes downward
Q65: When a firm earns a rate of
Q66: Suppose that a firm has an opportunity
Q67: An increase in investment in the present
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents