1.

When the number of investments made by a firm increases, its internal rate of return-

A. The current consumption increases to compensate the firm for the forecast
B. If other things remain the same, falls because the market rate of interest will fall
C. increases because the level of savings will fall
D. Falls because of diminishing marginal productivity
Answer» B. If other things remain the same, falls because the market rate of interest will fall


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