Table 12.2
Returns on Investment

-If Table 12.2 represents all the investments available to the economy, the nominal interest rate is 4.5 percent and there is no inflation, what will be the level of investment in the economy?
A) $200
B) $500
C) $600
D) $800

Question

Table 12.2
Returns on Investment
 
-If Table 12.2 represents all the investments available to the economy, the nominal interest rate is 4.5 percent and there is no inflation, what will be the level of investment in the economy?
A) $200 
B) $500 
C) $600 
D) $800

Quizplus · Accepted Answer

The level of investment in the economy can be found by adding up the total returns on investment from Table 12.2. 
10 + 40 + 150 + 200 + 100 = $600. Therefore, the best choice is C.

Table 12.2 Returns on Investment