Multiple Choice
An increase in the prevailing interest rate
A) increases the present value of future returns from investment, and increases investment.
B) decreases the present value of future returns from investment, and decreases investment.
C) decreases the present value of future returns from investment, and increases investment.
D) increases the present value of future returns from investment, and decreases investment.
Correct Answer:

Verified
Correct Answer:
Verified
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