Multiple Choice
A firm's level of investment depends on the market interest rate:
A) only when the firm has to borrow funds to invest in new equipment.
B) only when the firm has to borrow funds to buy stocks and bonds.
C) only when the firm already has sufficient funds and could lend them.
D) because the interest rate represents the opportunity cost of investing in capital.
E) because investments are always made with borrowed funds.
Correct Answer:
Verified
Correct Answer:
Verified
Q130: Which of the following is illustrated by
Q131: If a household's income falls from $20,000
Q132: A decrease in the price level will
Q133: If the market interest rate equals 8
Q134: Which of the following will shift the
Q136: The smaller the marginal propensity to save,other
Q137: A technological change that positively affects business
Q138: A decrease in the price level in
Q139: If investment increases by $100 and,as a
Q140: Net taxes are:<br>A)taxes plus transfer payments.<br>B)taxes minus