Need to borrow a small amount of funds

Reference no: EM133630988

Question: Assume that Canadian economy has recovered from the COVID-19 pandemic, and consumers show continuous strong demand. As a manager of a firm, you want to increase the production capacity of your firm by about 40% over the next few years to satisfy the increased demand. You are considering issuing bonds to finance this expansion. However, at the same time, an increase in the aggregate demand pushes up the general price level and put inflationary pressure in the economy.

So, you are concerned that the Bank of Canada would raise interest rate again to control the inflation rate in the near future. a. If you only need to borrow a small amount of funds

Reference no: EM133630988

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Need to borrow a small amount of funds : Canada would raise interest rate again to control the inflation rate in the near future. If you only need to borrow a small amount of funds

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