Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but there are $5 billion of investment opportunities with an expected rate of
Return between 20 and 25 percent, an additional $5 billion between 15 and 20 percent, and so on. If
The real interest rate is 15 percent in this economy, the aggregate amount of investment will be
A) $25 billion.
B) $20 billion.
C) $15 billion.
D) $10 billion.

Question

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The Answer of Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but there are $5 billion of investment opportunities with an expected rate of
Return between 20 and 25 percent, an additional $5 billion between 15 and 20 percent, and so on. If
The real interest rate is 15 percent in this economy, the aggregate amount of investment will be
A) $25 billion.
B) $20 billion.
C) $15 billion.
D) $10 billion.

Assume There Are No Prospective Investment Projects (I) That Will