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Borrowing to Fund Investment Projects Until the Marginal Rate of Return

Question 127

Multiple Choice

Borrowing to fund investment projects until the marginal rate of return falls to ________ is optimizing investment strategy for ________.


A) the borrowing rate,businesses and governments
B) the borrowing rate,businesses but not governments
C) the borrowing rate,governments but not businesses
D) zero,businesses and governments
E) zero,governments but not businesses

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