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The table shows the rate of return and R&D spending for a hypothetical firm. Assume the interest-rate cost of funds falls from 18 percent to
The table shows the rate of return and R&D spending for a hypothetical firm. Assume the interest-rate cost of funds falls from 18 percent to 12 percent. What will happen to the optimal amount of R&D spending? It decreases from $24 billion to $12 billion. It increases from $18 billion to $24 billion. It increases from $18 billion to $30 billion. It decreases from $30 billion to $18 billion
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