Which of the Following Is NOT a Reason Why an Increase

question 16

Multiple Choice

Which of the following is NOT a reason why an increase in the interest rate usually makes investment projects less attractive?

• A) At a higher rate, future dollars are worth less compared to current dollars.
• B) A typical investment project incurs the majority of its costs early in its life.
• C) A typical investment project receives a disproportionate fraction of its revenue early in its life.
• D) At a higher rate, putting money into the bank is more attractive.

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