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4 Investment occurs when: O the expected real interest rate is less than the expected real return on the investment project. O individuals realize that

4 Investment occurs when: O the expected real interest rate is less than the expected real return on the investment project. O individuals realize that there are greater long-term gains in the equity and credit markets. firms are very profitable and have lots of extra cash on hand. O there is less risk aversion. 2 pts

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