Question

What is capital rationing? Why does it arise? What significance does it have for investment decisionmaking? 

    What is capital rationing? Why does it arise? What significance does it have for investment decisionmaking?
Intermediate Microeconomics
Intermediate Microeconomics
Robert W. Clower,… 1st Edition
Chapter 15, Problem 12 ↓

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This limitation can be due to internal constraints (like setting a budget for investment based on available funds) or external constraints (such as restricted access to capital markets).  Show more…

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What is capital rationing? Why does it arise? What significance does it have for investment decisionmaking?
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