Which of the Following Is (Are) True

question 46

Multiple Choice

Which of the following is (are) true?

• A) The firm's desire to acquire and hold capital depends only on the price of the capital.
• B) The NPV of capital depends on the interest rate.
• C) The higher the interest rate, the greater the amount of capital that firms will want to acquire and hold.
• D) All of the above are true.

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Definitions:

Cease-and-desist Order

A legal order issued by a government agency or court to stop an activity or behavior that is alleged to be illegal.

Federal Trade Commission

A U.S. federal agency aimed at preventing anticompetitive, deceptive, and unfair business practices through law enforcement, advocacy, and education.

Total Price

The complete cost of a good or service, including all taxes, fees, and additional charges.

Federal Trade Commission

A U.S. federal agency established to prevent fraudulent, deceptive, and unfair business practices.