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Consider the Chapter 11 two-period model with investment

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Consider the Chapter 11 two-period model with investment. Letr denote the net interest rate on safe government bonds What is true about a firms' optimal investment decision? O A. A firm should never invest in capital if the marginal product of future capital net of depreciation equals r. OB. A firm should continue to invest in capital when the marginal product of future capital net of depreciation exceeds r. OC. A firm should continue to invest in capital when the marginal product of future capital is lower than the user cost of capital. OD. A firm should reduce investments in capital when the marginal product of future capital exceeds the user cost of capital. O E. A firm should reduce investments in capital when the marginal product of future capital net of depreciation exceeds r. The firm's investment demand O A. decreases with r O B. increases with r