Author Question: When output exceeds planned expenditures, there is insufficient production in the economy. ... (Read 118 times)

xroflmao · **on:** Jun 30, 2018

When output exceeds planned expenditures, there is insufficient production in the economy.

Indicate whether the statement is true or false

Question 2

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

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