Refer to the given information. If the real interest rate is 15 percent, what amount of investment will be undertaken?
Answer the question on the basis of the following information for a private closed economy.
Assume that for the entire business sector of the economy there is $0 worth of investment
projects that will yield an expected rate of return of 25 percent or more. But there are $15
worth of investments that will yield an expected rate of return of 20-25 percent; another $15
with an expected rate of return of 15-20 percent; and similarly an additional $15 of investment
projects in each successive rate of return range down to and including the 0-5 percent range.
A. $15.
B. $30.
C. $45.
D. $60.
B. $30.
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If real GDP for a given year is $2400 billion and nominal GDP is $2400,
A) this year is the base year for the GDP deflator. B) the GDP deflator for this year is 1.25. C) the GDP deflator for this year is 0.8. D) the GDP deflator for this year is 1.10.
The price elasticity of demand for gasoline is estimated to be -0.2. Two million gallons are sold daily at a price of $1. Use this information to calculate a demand curve for gasoline assuming it is linear
What will be an ideal response?
An increase in the money supply should cause the expenditure schedule to shift upward.
Answer the following statement true (T) or false (F)
The advantages of maintaining monopolies:
A. always outweighs the total welfare costs due to lost surplus. B. never outweighs the total welfare costs due to lost surplus. C. sometimes outweighs the total welfare costs due to lost surplus. D. is a normative argument that has no right answer.