Difference between revisions of "Financing constraint"
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Latest revision as of 15:07, 2 July 2020
Financing constraint is a limit on the quantity of funds a firm can raise—such as through borrowing— in order to buy capital.
Definition
According to Macroeconomics by Mankiw (7th edition),
- Financing constraint. A limit on the quantity of funds a firm can raise—such as through borrowing— in order to buy capital.
