Multiple Choice
Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more,but there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent,an additional $5 billion between 15 and 20 percent,and so on.If the real interest rate is 15 percent in this economy,the aggregate amount of investment will be:
A) $25.
B) $20.
C) $15.
D) $10.
Correct Answer:
Verified
Correct Answer:
Verified
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