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The Table Shows the Projected Rate of Return and Number

Question 101

Multiple Choice

The table shows the projected rate of return and number of investment projects that might be undertaken by a small firm. Each project requires an investment of $1,000. If the interest rate decreases from 25 percent to 20 percent, the quantity of loanable funds demanded by this firm A) increases by $1,000. B) increases by $3,000. C) decreases by $3,000. D) decreases by $4,000. The table shows the projected rate of return and number of investment projects that might be undertaken by a small firm. Each project requires an investment of $1,000. If the interest rate decreases from 25 percent to 20 percent, the quantity of loanable funds demanded by this firm


A) increases by $1,000.
B) increases by $3,000.
C) decreases by $3,000.
D) decreases by $4,000.

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