Multiple Choice
A firm's level of investment is tied to the interest rate
A) only when the firm has to borrow funds to buy capital
B) only when the firm has to borrow funds to buy stocks
C) only when the firm already has the 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
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