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 the interest rate that would be necessary to bring about an investment of $200.
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Q11: Describe in broad terms what the money
Q12: The textbook discusses the "crowding out effect".
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