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Heart's Restaurants Considered Building a Restaurant in a New Location

Question 6

Multiple Choice

Heart's Restaurants considered building a restaurant in a new location.The owners and their accountants decided that this was not the profitable thing to do.However,soon after they made this decision,both the interest rate and the cost of building the restaurant changed.In which case do these changes both make it more likely that they will now build the restaurant?


A) Interest rates rise and the cost of building the restaurant rises.
B) Interest rates rise and the cost of building the restaurant falls.
C) Interest rates fall and the cost of building the restaurant rises.
D) Interest rates fall and the cost of building the restaurant falls.

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