Assume There Are No Investment Projects That Will Produce an Expected

Multiple Choice

Assume there are no investment projects that will produce an expected rate of return of 8 percent or more.There are, however, $2 billion worth of investment projects with an expected rate of return at 7 percent, and an additional $2 billion for every drop of the interest rate by 1 percent.If the real interest rate is 3 percent in this economy, the cumulative amount of investment at the 3 percent or higher rate of return is

A) $10 billion.
B) $8 billion.
C) $6 billion.
D) $4 billion.