Everything else held constant, when financial frictions increase, the real cost of borrowing__________ so that planned investment spending at any given inflation rate.a. increases; risesb.increases; fallsc.decreases; risesd.decreases; falls

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Everything else held constant, when financial frictions increase, the real cost of borrowing
at any given inflation rate.a. increases; risesb.increases; fallsc.decreases; risesd.decreases; falls
so that planned investment spending
Transcribed Image Text:Everything else held constant, when financial frictions increase, the real cost of borrowing at any given inflation rate.a. increases; risesb.increases; fallsc.decreases; risesd.decreases; falls so that planned investment spending
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