Multiple Choice
Answer the question on the basis of the following information for a private closed economy.Assume that for the entire business sector of the economy there is $0 worth of investment projects that will yield an expected rate of return of 25 percent or more.But there are $15 worth of investments that will yield an expected rate of return of 20-25 percent;another $15 with an expected rate of return of 15-20 percent;and similarly an additional $15 of investment projects in each successive rate of return range down to and including the 0-5 percent range. Refer to the given information.If the real interest rate is 5 percent,what amount of investment will be undertaken?
A) $15.
B) $30.
C) $45.
D) $60.
Correct Answer:
Verified
Correct Answer:
Verified
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