Problem
How does a change in the interest rate affect aggregate investment? What if firms prefer to pay for investment spending out of retained earnings? Does a change in the interest rate still affect aggregate investment? [LO 11.2] Karlan, Dean; Morduch, Jonathan (2017-02-07). Macroeconomics (Page 294). McGraw-Hill Higher Education. Kindle Edition.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.