The Table Shows the Projected Rate of Return and Number

question 258

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. If the interest rate increases from 5 percent to 15 percent, the amount of loanable funds demanded by this firm

• A)increases by $1,000.
• B)increases by $3,000.
• C)decreases by $2,000.
• D)decreases by $3,000.

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Definitions:

Natural Resource

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.