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Capital Markets Will Channel Funds Efficiently into Productive Projects and Bring

Question 32

Multiple Choice

Capital markets will channel funds efficiently into productive projects and bring counterproductive projects to a halt, because


A) business firms will direct resources into projects favored by a majority of the citizenry.
B) government will intervene and bring counterproductive projects to a halt.
C) private investors will insist on an accounting of their investments and monitor projects using their funds.
D) central planners will direct funds only to those projects that are productive.

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