How does change in interest rate affect aggregate investment, Microeconomics

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How does change in interest rate affect aggregate investment

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.

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