If the Interest Rate Rises, a Profit-Maximizing Firm Will Tend

question 82

Multiple Choice

If the interest rate rises, a profit-maximizing firm will tend to

• A)invest in more projects (such as new plants) with payoffs in the future.
• B)invest in fewer projects with payoffs in the future.
• C)increase both current output and future output.
• D)reduce both current output and future output.

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