Multiple Choice
Assume that the investment function is given by I = 1,000 - 30r, where r is the real rate of interest (in percent) . Assume further that the nominal rate of interest is 10 percent and the inflation rate is 2 percent. According to the investment function, investment will be:
A) 240.
B) 700.
C) 760.
D) 970.
Correct Answer:
Verified
Correct Answer:
Verified
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