What happens as the interest rate rises?
A) The number of profitable investment opportunities declines.
B) The opportunity cost of using retained earnings to finance investment spending rises.
C) Planned investment spending also rises.
D) Planned investment spending remains constant since it depends on profit projections not interest rates.

Question

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The Answer of What happens as the interest rate rises?
A) The number of profitable investment opportunities declines.
B) The opportunity cost of using retained earnings to finance investment spending rises.
C) Planned investment spending also rises.
D) Planned investment spending remains constant since it depends on profit projections not interest rates.

What Happens as the Interest Rate Rises