MCQOPTIONS
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| 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 | |