If the Rate of Return Is Lower Than the Cost

question 3

Multiple Choice

If the rate of return is lower than the cost of borrowing the:

• A) investor will lose money on net after paying back the loan.
• B) investor should take out the loan.
• C) borrower will make money by taking out the loan.
• D) savers will lose out by taking a loan.

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Definitions:

Long-Term Memories

Memories that are stored for an extended period, ranging from a few days to decades.

Profound Amnesia

An extreme form of memory loss that obstructs the recall of fundamental personal information and past experiences.

Anterograde Amnesia

A loss of the ability to create new memories after the event that caused the amnesia, while long-term memories from before the event remain intact.

Retrograde Amnesia

The condition in which an individual loses pre-existing memories to some extent, often due to brain damage or psychological trauma.