This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why do we think about the interest rate as the "price" of capital? (Read 58 times)

caca31

  • Full Member
  • ***
  • Posts: 145
on: Oct 12, 2022
Why do we think about the interest rate as the "price" of capital?
◦ Because firms use financial capital to purchase physical capital and the interest rate is the "price" of financial capital.
◦ Because the interest rate determines the equilibrium level of investment demand.
◦ Because the interest rate represents the value the firm avoids paying to lenders by purchasing the capital instead.
◦ Because the interest rate determines the MRP of the capital, which determines its price.
◦ Because the interest rate is the amount the firm earns by purchasing the capital.
Microeconomics ¦ Ragan ¦ 17th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by caca31 on Oct 12, 2022

SphnxKickin

  • Full Member
  • ***
  • Posts: 165
Reply #1 on: Oct 12, 2022
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


caca31

  • Member
  • Posts: 145
Reply 2 on: Oct 12, 2022
Thanks for the timely response, appreciate it

billybob123

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

The rate of evolution in short­ and long­lived plants The rate of evolution in short­ and long­lived plants
For this bimolecular reaction, the rate constant k is second order For this bimolecular reaction, the rate constant k is second order
Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
GDP and Capital per Worker, 2009 GDP and Capital per Worker, 2009
Calculating Growth Rate of Bacteria Calculating Growth Rate of Bacteria
The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ... The retail price of a packaged CD is $60.00, which includes a tax of 4%. What is the actual ...
Video: Medullary osmotic gradient - influencing factors

For a complete list of videos, visit our video library