If the interest rate on borrowing falls,
A)the demand curve for loans will shift out.
B)the discounted value now of money to be received in the future will fall.
C)some previously unprofitable prospective investments will become profitable.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

When interest rates fall, the cost of borrowing decreases, making some previously unprofitable investments viable due to lower financing costs.

If the Interest Rate on Borrowing Falls