Multiple Choice
A lower interest rate leads to higher investment spending because
A) higher interest rates lower the appropriately discounted return and make more investment projects profitable.
B) lower interest rates lower the appropriately discounted return and make more investment projects profitable.
C) higher interest rates lower the appropriately discounted return and make fewer investment projects profitable.
D) lower interest rates increase the appropriately discounted return and make fewer investment projects profitable.
Correct Answer:
Verified
Correct Answer:
Verified
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