Multiple Choice
A firm knows that it can borrow funds at 7 percent to invest in capital. Whether or not it borrows the funds depends upon the
A) amount of people's saving.
B) rate of time preference of consumers.
C) return on capital relative to the price of credit.
D) difference between its interest payments and the interest rate.
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
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