Multiple Select QuestionSelect all that applyWhich of the following exemplify how the interest rate does not perfectly ration capital to its most productive uses?Multiple select question.Small entrepreneurs who are able to secure venture capital fundingBorrowers that are able to earn a return on investment greater than the cost of the borrowed fundsLarge corporate borrowers that use their size and prestige to negotiate more favorable terms than smaller firmsLarge oligopolistic borrowers that pass interest costs on to consumers because they can change prices by controlling outputNeed help? Review these concept resources.

Which of the following scenarios would likely entice entrepreneurs to increase the amount of borrowing from financial institutions?Multiple ChoiceMore competitors entering the marketRaised interest ratesOptimism about the good or service they produceAnticipation of more tax regulations for small business owners

Multiple Select QuestionSelect all that applyWhich of the following exemplifies how the interest rate rations the available supply of loanable funds to investment projects that have expected rates of return at or above the interest rate cost of borrowed funds?Multiple select question.If the expected rate of return on capital is 16%, an industry will find it profitable to expand its capital at 8% interestIf the expected rate of return on capital is 6%, an industry will find it unprofitable to expand its capital at 8% interestIf the expected rate of return on capital is 15%, an industry will find it unprofitable to expand its capital at 10% interestIf the expected rate of return on capital is 10%, an industry will find it profitable to expand its capital at 12% interest

Multiple Select QuestionSelect all that applyA higher equilibrium interest rate has which of the following effects?Multiple select question.It increases investment and total spending.It reduces investment and total spending.It discourages business from borrowing for investment.It encourages business to borrow more for investment.

Multiple Choice QuestionThe interest rate serves to allocate money and physical capital to Blank______.Multiple choice question.the industries in which the capital will be most productive, but not necessarily profitablethe industries in which the capital will be most profitable, but not necessarily more productiveall industries equallythe industries in which the capital will be most productive and profitable

Multiple Choice QuestionBusinesses borrow loanable funds primarily to increase their stock of Blank______ goods.Multiple choice question.loanablecapitalintangiblepublic