Multiple Choice
If the interest rate on a loan is higher than the expected return from an investment,
A) a rational firm will take out a loan for the investment.
B) the Federal Reserve will conduct contractionary monetary policy.
C) a rational firm will not take out a loan for the investment.
D) the Federal Reserve will conduct expansionary monetary policy.
E) the government will conduct expansionary fiscal policy.
Correct Answer:
Verified
Correct Answer:
Verified
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