Which of the Following Is a True Statement Relative to Retained

question 287

Multiple Choice

Which of the following is a true statement relative to retained earnings and investment?

• A) Lower interest rates stimulate borrowing for investment, but have no effect on the use of retained earnings for investment spending.
• B) Lower interest rates stimulate borrowing for investment, but discourage the use of retained earnings for investment.
• C) Lower interest rates reduce the opportunity cost of retained earnings, stimulating the use of these funds in investment.
• D) Lower interest rates have no effect on investment spending at all because investment spending is autonomous.

---

Definitions:

Stereotypes

Oversimplified generalizations about groups of people that may or may not reflect reality and can lead to prejudiced attitudes and discrimination.

Prejudice

Preconceived opinion that is not based on reason or actual experience; bias against individuals or groups.

Core Characteristics

Fundamental qualities or features that define and distinguish an entity, concept, or theory.

Cultural Features

Characteristics that define a particular culture, including language, art, customs, traditions, and values.