Question: Borrowers expected returns on real assets set an upper limit on how much borrowers can afford to pay for funds What exactly does this mean?

"Borrowers expected returns on real assets set an upper limit on how much borrowers can afford to pay for funds"

What exactly does this mean? Is it just a way of saying that ones expected income/return on real assets sets the limit to how much they can pay for additional funds for other investments?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!