Multiple Choice
The demand curve for funds is downward sloping because
A) the value of the MRP in terms of today's money shrinks as the interest rate rises.
B) future returns must be discounted more when the interest rate rises.
C) as the interest rate rises, more and more investments become unprofitable.
D) All of the above are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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