Assume There Are No Prospective Investment Projects (I) Which Will

question 96

Multiple Choice

Assume there are no prospective investment projects (I) which will yield an expected rate of return (r) of 25 percent or more, but that 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.The investment-demand curve for this economy is:

• A)Column A
• B)Column B
• C)Column C
• D)Column D

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Definitions:

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