You Are Thinking About Building a New Mall

Multiple Choice

You are thinking about building a new mall.Your trusted economic consultants say the mall will bring a 7 percent real rate of return.Because you know that you can borrow the necessary money at 5 percent,

A) you will build the mall only if you expect inflation to remain below 2 percent.
B) you will definitely build the mall.
C) you will build the mall,unless you expect inflation to rise above 12 percent.
D) you will build the mall,so long as you expect inflation to remain below 7 percent.
E) you will build the mall,so long as you expect inflation to remain below 5 percent.