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Suppose That,when the Price of Steel Drops,steel Companies Tend to Cut

Question 24

Multiple Choice

Suppose that,when the price of steel drops,steel companies tend to cut back on investment in their non-steel activities more than other firms in these same non-steel activities.This would support the idea that


A) cash flow matters for investment.
B) cash flow does not matter for investment.
C) business firms do not care about profit.
D) business firms do not care about interest rates.
E) business firms do not use discounting.

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