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Which of the following statements about how corporations make their investment decisions is false? a. In the neoclassical model, the cost to the firm of
Which of the following statements about how corporations make their investment decisions is false?
a. In the neoclassical model, the cost to the firm of internal and external funds is the same.
b. Cash flow model indicates the amount of investment depends on the volume of both internal and external funds.
c. Neoclassical model indicates firms choose among alternative technologies according to their user cost of capital.
d. Accelerator model indicates the main determinant of the amount of investment is changes in the level of output demanded.
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