Assume That for the Entire Business Sector of the Economy

Multiple Choice

Assume that for the entire business sector of the economy there is $0 worth of investment projects which will yield an expected rate of return of 25 percent or more. But there are $15 worth of investments which 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 above 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 indeterminant.
D) cannot be calculated without knowing the level of saving.