Answer to Question #221309 in Macroeconomics for Nicky

Question

Which of the following is not one of the factors that determines the firm s decision to invest?

1 consumption expenditure
2 expected return
3 cost of capital
4 interest rate

Answer 1

1 consumption expenditure

Some of the consumption expenditures may come about or not. Therefore, they cannot be predicted and they cannot determine firms decision over investing.