Question: What do we call the cost that a borrower must pay to use debt capital? What two components make up the cost of using equity

  1. What do we call the cost that a borrower must pay to use debt capital? What two components make up the cost of using equity capital? What are the four most fundamental factors that affect the cost of money, or the general level of interest rates in the economy?
  2. What are some economic conditions that affect the cost of money?

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