Refer to the Data Provided in Table 11 -Ceteris Paribus, When Market Interest Rates ________, ________ Investment Projects

question 119

Multiple Choice

Refer to the data provided in Table 11.2 below to answer the following question(s) .
Table 11.2 $$\begin{array}{l}\begin{array} { l c c } &\text { Total Investment }&\text {Expected Rate of Return }\\ { \text { Project } } & \text { (dollars) } & \text { (percentage) } \\\hline \text { New bookkeeping software } & \$ 150,000 & 5 \\\text { New tractor } & \$ 200,000 & 12 \\\text { New grain storage tanks } & \$ 250,000 & 10 \\\text { Irrigation system } & \$ 500,000 & 15 \\\hline\end{array}\end{array}$$
-Ceteris paribus, when market interest rates ________, ________ investment projects are undertaken.

• A) decrease; more
• B) increase; more
• C) decrease; less
• D) increase; no

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