Use the following to answer questions:
Table: Investment Projects
-(Table: Investment Projects) Look at the table Investment Projects. If the market interest rate declines from 15% to 11%, then the amount of investment demanded will increase by:

Question

Use the following to answer questions:
Table: Investment Projects 
-(Table: Investment Projects) Look at the table Investment Projects. If the market interest rate declines from 15% to 11%, then the amount of investment demanded will increase by:

Quizplus · Accepted Answer

From the table, we can see that at a market interest rate of 15%, the amount of investment demanded is $10,000. If the interest rate declines to 11%, the amount of investment demanded will increase to $12,200 ($10,000 + [$10,000 x 0.22]). Therefore, the increase in investment demanded is $2,200.

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