Suppose that interest rates fall. This will cause:the present values of investment projects to fall; this will cause investment to risea.Ob. the present values of investment projects to fall; this will cause investment to fallOc the present values of investment projects to rise; this will cause investment to risethe present values of investment projects to rise; this will cause investment to fallOd.

If interest rates falls then cost of borrowing money from the money market decreases. Investors…

Answered: pose that interest'rates fall. This…

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pose that interest'rates fall. This will cause:

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 5E

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Question

Suppose that interest rates fall. This will cause:
the present values of investment projects to fall; this will cause investment to rise
a.
Ob. the present values of investment projects to fall; this will cause investment to fall
Oc the present values of investment projects to rise; this will cause investment to rise
the present values of investment projects to rise; this will cause investment to fall
Od.

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