Which of the following statements is FALSE?
A) Business spending on capital equipment and buildings is often postponable.
B) The most important determinant of investment spending is expected profit.
C) The amount of borrowing for investment purposes is inversely related to the interest rate.
D) The number of investment opportunities paying high rates of return is greater than the number paying low rates of return.

Question

Quizplus · Accepted Answer

The statement D is false because the number of investment opportunities paying high rates of return is typically less than those paying low rates of return, due to the risk-return tradeoff where higher returns are usually associated with higher risk.

Which of the Following Statements Is FALSE