Which of the Below Statements About the Rate of Interest

Multiple Choice

Which of the below statements about the rate of interest and cost of capital is FALSE?

A) The maximum that a firm will invest depends on the rate of interest, which is the cost of loans; the firm will invest only as long as the marginal productivity of capital exceeds or equals the rate of interest.
B) Firms will reject only projects whose gain is not less than their cost of financing.
C) The firm's demand for borrowing is negatively related to the interest rate; if the rate is high, only limited borrowing and investment make sense.
D) At a low rate of interest, more projects offer a profit, and the firm wants to borrow more; his negative relationship exists for each and all firms in the economy.