Identify the correct statement.
When interest rates fall, the firm’s cost of raising funds
through bonds increases.
It is absolutely compulsory for the government to earn a
profitable return on the money it earns by selling bonds.
When government borrowing rises, interest rates decline, thereby
driving up private investment.
An increase in interest rate reduces the cost of borrowing by
the firms.
When interest rates rise, fewer number of corporations offer new
bonds to raise investment funds.
Assume that French...