Refer to the information provided in Figure 8.8 below to answer the questions that follow. Figure 8.8
-Refer to Figure 8.8. The amount of planned investment ________ if the interest rate falls from 8% to 4%.
A) drops by $150 billion
B) rises by $150 billion
C) remains at $275 billion
D) remains at $125 billion

Question

Refer to the information provided in Figure 8.8 below to answer the questions that follow.  Figure 8.8
-Refer to Figure 8.8. The amount of planned investment ________ if the interest rate falls from 8% to 4%.
A) drops by $150 billion 
B) rises by $150 billion 
C) remains at $275 billion 
D) remains at $125 billion

Quizplus · Accepted Answer

According to Figure 8.8, at an interest rate of 8%, the planned investment is $125 billion. However, if the interest rate falls to 4%, the planned investment increases to $275 billion. Therefore, the planned investment rises by $150 billion if the interest rate falls from 8% to 4%.

Refer to the Information Provided in Figure 8