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Scenario 1 Assume That the Investment Demand Function Is Represented by the by the Following

Question 5

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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, if the interest rate were 10%, calculate the level of investment.

Correct Answer:

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I = $300 - 2000 * .1...

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