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.

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Standard Normal

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Electrical impulses or waves used to transmit information over distances, through wires, air, or other media.

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A device that transmits scanned printed material (both text and images) to a telephone number connected to a printer or other output device.