Which statement is true a borrowing money will always

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158. Which statement is TRUE? A) Borrowing money will always be more expensive than using retained earnings. B) The cost of retained earnings is unrelated to the cost of borrowing money. C) The tradeoff a firm faces whether using retained earnings or borrowed funds is the same. D) Using retained earnings has a higher opportunity cost than does using borrowed money because retained earnings come from past profits.
159. A fall in the market interest rate makes any investment project:
160. Planned investment spending _____ the interest rate.
161. Planned investment spending is _____ related to the interest rate because a _____ in the market interest rate _____.
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D) negatively; rise; causes consumption to crowd out investment 162. Retained earnings are earnings that firms: A) keep to pay taxes. B) keep to pay dividends. C) keep to finance investments. D) do not pay taxes on.
163. If the interest rate rises:
164. If a firm pays for investment spending out of retained earnings:
165. Planned investment spending will decrease if:
166. The accelerator principle states that planned investment spending by firms is: A) positively related to the expected growth of real GDP. B) negatively related to the expected growth of real GDP. C) negatively related to the current level of real GDP. D) positively related to the current level of real GDP.

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