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Question
What happens as interest rates fall?
A) The number of profitable investment opportunities declines.
B) The opportunity cost of using retained earnings to finance investment spending declines.
C) Planned investment spending also falls.
D) Planned investment spending remains constant since it depends on profit projections not interest rates.
Answer
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Related questions
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Which of the following statements is FALSE?
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Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will causeA) an increase in the demand for coffee. B) a decrease in the demand for coffee.C) a leftward shift of the demand curve for tea. D) a leftward shift in the demand for coffee.
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