

MCQOPTIONS
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1. |
As the number of investments made by a firm increases, its internal rate of return |
A. | declines due to diminishing marginal productivity. |
B. | declines because the market rate of interest will fall, ceteris paribus. |
C. | increases to compensate the firm for the current consumption foregone. |
D. | increases because the level of savings will fall. |
Answer» D. increases because the level of savings will fall. | |