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    Exam 6: Building Blocks of the Flexible-Price Model
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    If I<sub>0</sub> Is Equal to $3 Trillion, I<sub>r</sub> Is Equal
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If I0 Is Equal to $3 Trillion, Ir Is Equal

Question 64

Question 64

Multiple Choice

If I0 is equal to $3 trillion, Ir is equal to $15000 billion, and r is 5%, investment spending would equal


A) $750 billion.
B) $3.75 trillion.
C) $14850 billion.
D) $2.25 billion.

Correct Answer:

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