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 $10,000. If the interest rate decreases from 15 percent to 12 percent, the quantity of loanable funds demanded by this firm

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 $10,000. If the interest rate decreases from 15 percent to 12 percent, the quantity of loanable funds demanded by this firm

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Number of Investment.
Rate of Return Projects (for $10,000
(8)
each)
15
12
9
6
3
1
2
3
4
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 $10,000. If the interest rate decreases from 15 percent to 12 percent, the quantity of loanable
funds demanded by this firm

project requires an investment of $10,000. If the interest rate decreases from 15 percent to 12 perc
funds demanded by this firm
Multiple Choice
decreases by $10,000.
decreases by $30,000.
increases by $1,000.
Increases by $10,000.

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