The above schedule indicates that if the real interest rate is 8 percent, then:
A)we cannot tell what volume of investment will be profitable.
B)$30 billion will be both saved and invested.
C)$30 billion of investment will be undertaken.
D)$60 billion of investment will be undertaken.

Question

The above schedule indicates that if the real interest rate is 8 percent, then:
A)we cannot tell what volume of investment will be profitable. 
B)$30 billion will be both saved and invested. 
C)$30 billion of investment will be undertaken. 
D)$60 billion of investment will be undertaken.

Quizplus · Accepted Answer

According to the schedule, at a real interest rate of 8 percent, $30 billion of investment will be undertaken. This can be seen by locating the row for a real interest rate of 8 percent and finding the corresponding value under the "Investment" column, which is $30 billion.

The Above Schedule Indicates That If the Real Interest Rate