When Interest Rates Allocate Capital

Multiple Choice

When interest rates allocate capital

A) many worthwhile projects fail to get funded and society is worse off.
B) investment projects of firms tend to get funded while valuable social investments funded by the government tend not to get funded.
C) only investment projects are funded for which the expected benefits of the projects equal or exceed the opportunity cost of the projects.
D) there is an under investment in capital and overspending on durable consumer goods.