A Firm Will Invest in a Project If

question 132

Multiple Choice

A firm will invest in a project if

• A) the interest rate exceeds the opportunity cost of the project.
• B) the firm's level of capital is at the desired level.
• C) the firm's level of capital is higher than the desired level.
• D) the rate of return of the project is greater than the opportunity cost of the investment.

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Definitions:

Memory

The persistence of learning over time through the encoding, storage, and retrieval of information.

Echoic Memory

A momentary sensory memory of auditory stimuli; if attention is elsewhere, sounds and words can still be recalled within 3 or 4 seconds.

Iconic Memory

A momentary sensory memory of visual stimuli; a photographic or picture-image memory lasting no more than a few tenths of a second.

Retrieval

The process of recalling information stored in memory.