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When a country's risk-free rate falls, the cost of equity to an MNC in that country ___, and the cost of debt to an MNC

When a country's risk-free rate falls, the cost of equity to an MNC in that country ___, and the cost of debt to an MNC in that country __, other things held constant.

increases; increases

decreases; decreases

is not affected; increases

is not affected; is not affected

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