Table investment projects reference table investment

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Chapter 21 / Exercise 27
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11. Table: Investment Projects Reference: Ref 10-14 (Table: Investment Projects) Look at the table Investment Projects. If the market interest rate declines from 15% to 13%, then the amount of investment demanded will increase by: $1,000. $2,000. $200. $2,200.
12. A business will be likely to borrow to fund projects if:
13. The Fisher effect states that:
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Chapter 21 / Exercise 27
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inflation. 14. An amount that would equal a particular future value if deposited today at the prevailing interest rate is the:
15. The present value of a $110 payment in one year, given an annual 10% interest rate, is: $110. $100. $11. $10.
16. Suppose that Jim just got a $20,000 loan from his credit union to buy a new car. The loan is a _____ for Jim and a _____ for the credit union.

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