Answer the question on the basis of the following information for a private closed economy.Assume that for the entire business sector of the economy there is $0 worth of investment projects that will yield an expected rate of return of 25 percent or more.But there are $15 worth of investments that will yield an expected rate of return of 20-25 percent;another $15 with an expected rate of return of 15-20 percent;and similarly an additional $15 of investment projects in each successive rate of return range down to and including the 0-5 percent range. Refer to the given information.If the real interest rate is 15 percent,what amount of investment will be undertaken?
A) $15.
B) $30.
C) $45.
D) $60.
Correct Answer:
Verified
Q62: If the nominal interest rate is 18
Q64: A high rate of inflation is likely
Q88: Answer the question on the basis of
Q103: Other things equal, a 10 percent decrease
Q107: The investment demand curve will shift to
Q116: Other things equal, if the real interest
Q118: If the real interest rate in the
Q119: The investment demand curve will shift to
Q128: If the real interest rate in the
Q132: When we draw an investment demand curve,
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents