A profit-maximizing firm will borrow money at a given interest rate,and use that money to fund an investment,if and only if the
A) interest rate is less than the expected rate of return on the investment.
B) interest rate is lower than rates expected in the near future.
C) planned investment is expected to be profitable.
D) interest rate is lower than it has been in the recent past.
E) interest rate is less than the firm's historic profitability rate.
Correct Answer:
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