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In General, a Firm Will Be Unlikely to Invest as Long

Question 35

Multiple Choice

In general, a firm will be unlikely to invest as long as the


A) interest rate is greater than the inflation rate.
B) firm has to borrow any money to make the investment.
C) profits realized from the investment are insufficient to cover the interest payments.
D) firm cannot sell bonds directly to the public and instead must borrow from a bank.

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