If net external wealth increases for firms, it could ____ their ability to borrow and expand.
A) cut off completely
B) increase
C) decrease
D) have no effect

Question

Quizplus · Accepted Answer

An increase in net external wealth means that firms have more assets than liabilities, which in turn increases their creditworthiness and ability to borrow. With increased borrowing capacity, they can expand their operations and invest in new projects.

If Net External Wealth Increases for Firms, It Could ____