The Table Shows the Projected Rate of Return and Number

question 40

Multiple Choice

The table shows the projected rate of return and number of investment projects that might be undertaken by a small firm. Each project requires an investment of $1,000. The number of investment projects this firm would undertake will decrease from 4 to 2 if the interest rate in the loanable funds market

• A)increases from 10 percent to 20 percent.
• B)decreases from 20 percent to 10 percent.
• C)decreases from 15 percent to 10 percent.
• D)increases from 15 percent to 20 percent.