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If a firm finances investment spending out of retained earnings, then the interest rate is: irrelevant. the opportunity cost of using those funds. the equivalent
If a firm finances investment spending out of retained earnings, then the interest rate is: irrelevant. the opportunity cost of using those funds. the equivalent of income plus transfers minus taxes. the ratio of the total change in real gross domestic product (GDP) caused by an autonomous change in aggregate spending to the size of that autonomous change
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Macroeconomics Theories and Policies
Authors: Richard T. Froyen
10th edition
013283152X, 978-0132831529
