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The Federal Reserve initiates a policy that lowers interest rates across the board. Holding all else the same and assuming normal economic conditions, how does
The Federal Reserve initiates a policy that lowers interest rates across the board. Holding all else the same and assuming normal economic conditions, how does a lower interest rate affect corporate capital budgeting decisions?
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It results in accepting more investment projects.
It would have absolutely no effect on corporate capital budgeting decisions.
It results in accepting fewer investment projects.
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