In General, a Firm Will Be Unlikely to Invest as Long

question 35

Multiple Choice

In general, a firm will be unlikely to invest as long as the

• A) interest rate is greater than the inflation rate.
• B) firm has to borrow any money to make the investment.
• C) profits realized from the investment are insufficient to cover the interest payments.
• D) firm cannot sell bonds directly to the public and instead must borrow from a bank.

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Definitions:

Postreproductive Survival

The period of an organism's life after it has completed its reproductive phase, which can have significant evolutionary implications, particularly in social species.

Primates

An order of mammals characterized by large brains, forward-facing eyes, and complex social structures, including humans, monkeys, and apes.

Grandmother Hypothesis

A theory positing that the presence and assistance of post-menopausal women, especially grandmothers, can significantly increase the survival rates of their grandchildren, thereby influencing human evolution.

Life-history Hypothesis

A theory that explains how natural selection operates on traits that affect an organism's life cycle, such as reproductive timing, growth, and survival.