Firms will most likely borrow money for investment when ____.
a. interest rates are low
b. interest rates are high
c. the interest rate is higher than the expected profit rate.
d. the expected profit rate is higher than the interest rate
Answer: D
Firms will most likely borrow money for investment when ____.
a. interest rates are low
b. interest rates are high
c. the interest rate is higher than the expected profit rate.
d. the expected profit rate is higher than the interest rate