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.The expected rate of return curve:
A) shows a direct relationship between the interest rate and investment.
B) is also the investment demand curve.
C) is indeterminate.
D) implies a direct (positive) relationship between the interest rate and the level of GDP.
Correct Answer:
Verified
Correct Answer:
Verified
Q60: (Consider This) During the Great Recession of
Q96: Other things equal, a decrease in the
Q102: Answer the question on the basis of
Q106: Answer the question on the basis of
Q108: Which of the following will not tend
Q110: Answer the question on the basis of
Q111: Which one of the following will cause
Q112: (Consider This)During the Great Recession of 2007-2009,both
Q116: The multiplier is defined as<br>A)1 − MPS.<br>B)change
Q199: When consumption and saving are graphed relative