Investment Demand Is Downward Sloping Because as the Interest Rate

question 71

Multiple Choice

Investment demand is downward sloping because as the interest rate decreases,

• A) each project's internal rate of return decreases.
• B) each project's internal rate of return increases.
• C) more projects will have an internal rate of return that exceeds the interest rate.
• D) more projects will have an internal rate of return that is less than the interest rate.

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