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Suppose That Along the Economy-Wide Rate-Of-Return Line,the Current Interest Rate

Question 28

Multiple Choice

Suppose that along the economy-wide rate-of-return line,the current interest rate of 8 percent causes planned investment of $300 billion.The $250-billionth dollar of investment spending has a rate of return ________ 8 percent and thus a ________ profit rate.


A) below,positive
B) below,negative
C) above,positive
D) above,negative

Correct Answer:

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