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Interest Is Considered A(n)

Question 3

Multiple Choice

Interest is considered a(n)


A) form of depreciation if the cost of borrowing increases.
B) implicit cost when the firm owner uses his or her own funds to buy capital.
C) explicit cost when the firm pays a bank to borrow money.
D) return to entrepreneurship if the firm owner uses his or her own funds to buy capital.
E) Both answers A and B are true.

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