Suppose that intel is considering building a new chip-making factory.
(i) assuming that intel needs to borrow money in the bond market, an increase in interest rates makes it likely that intel will build the new factory.
(a) true
(b) false
(ii) if intel has enough of its own funds to build the new factory without borrowing, an increase in interest rates would not affect intel’s decision about whether to build the factory.
(a) true
(b) false