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The Potbelly Pothole Company Is Undertaking Some Investments in Its

Question 160

Multiple Choice

The Potbelly Pothole Company is undertaking some investments in its plant. Suppose interest rates fall and new technologies increase the return on investment. What is likely to happen?


A) The company's demand for investments will fall.
B) The company's demand for investments will rise.
C) The company's demand for investments will first fall as interest rates fall and then rise as technology improves.
D) There will be no change in the company's demand for investments.

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