Rate of Return (%) Number of Investment Projects (for $1,000 each) 25 1 20 2 15 3 10 4 5 5 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 increases from 5 percent to 15 percent, the amount of loanable funds demanded by this firm Group of answer choices increases by $1,000. increases by $3,000. decreases by $2,000. decreases by $3,000.
Rate of Return (%) Number of Investment Projects (for $1,000 each) 25 1 20 2 15 3 10 4 5 5 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 increases from 5 percent to 15 percent, the amount of loanable funds demanded by this firm Group of answer choices increases by $1,000. increases by $3,000. decreases by $2,000. decreases by $3,000.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
| Rate of |
Number of Investment Projects (for $1,000 each) |
|---|---|
| 25 | 1 |
| 20 | 2 |
| 15 | 3 |
| 10 | 4 |
| 5 | 5 |
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 increases from 5 percent to 15 percent, the amount of loanable funds demanded by this firm
Group of answer choices
increases by $1,000.
increases by $3,000.
decreases by $2,000.
decreases by $3,000.
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