In the Graph, the Optimal Amount of R&D Spending and the Interest-Rate

question 264

Multiple Choice

In the graph, the optimal amount of R&D spending and the interest-rate cost-of-funds at that optimal level would be, respectively,

• A)$10 million and 9 percent.
• B)$10 million and 13 percent.
• C)$30 million and 9 percent.
• D)$50 million and 6 percent.

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Definitions:

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Growth

The increase in size, value, or importance of something over time.

Decline

A decrease or reduction in the value, quantity, or quality of something over time.

Entire Economy

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