Scenario 1
Assume that the investment demand function is represented by the following algebraic function: I = $300 - 2000r where $300 represents autonomous investment and "r" represents the interest rate.
-Using Scenario 1 calculate how high the interest rate would have to rise to drive planned investment to zero. Calculate the amount of investment that would take place at an interest rate of zero.
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Q1: Assume the following graph for money supply
Q2: Related to the Economics in Practice on
Q3: Q5: Scenario 1 Q6: Draw a flowchart showing the impact of Q7: Graphically illustrate the relationship between interest rate Q8: Suppose the investment demand function is given Q9: Critically evaluate the assumption of autonomous investment. Q10: Why is there a negative relationship between Q11: Describe in broad terms what the money
Assume that the investment demand function
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