Examlex

Solved

Assume That If the Interest Rate That Businesses Must Pay

question 220

Multiple Choice

Assume that if the interest rate that businesses must pay to borrow funds were 20 percent, it would be unprofitable for businesses to invest in new machinery and equipment so that investment would be zero.But if the interest rate were 16 percent, businesses would find it profitable to invest $10 billion.If the interest rate were 12 percent, $20 billion would be invested.Assume that total investment continues to increase by $10 billion for each successive 4 percentage point decline in the interest rate.Refer to the above information.Using i and I to indicate the interest rate and investment (in billions of dollars) respectively, which of the following is the correct tabular presentation of the described relationship? Assume that if the interest rate that businesses must pay to borrow funds were 20 percent, it would be unprofitable for businesses to invest in new machinery and equipment so that investment would be zero.But if the interest rate were 16 percent, businesses would find it profitable to invest $10 billion.If the interest rate were 12 percent, $20 billion would be invested.Assume that total investment continues to increase by $10 billion for each successive 4 percentage point decline in the interest rate.Refer to the above information.Using i and I to indicate the interest rate and investment (in billions of dollars)  respectively, which of the following is the correct tabular presentation of the described relationship?   A) column (A)  B) column (B)  C) column (C)  D) column (D)


Definitions:

Gene Pool

The complete set of unique alleles in a population or species, representing its genetic diversity.

Organisms

Living entities that can carry out life processes independently, including plants, animals, fungi, bacteria, and archaea.

Uniform Dispersion

A distribution pattern within a population where each individual is evenly spaced throughout their habitat.

Territoriality

The behavioral pattern of animals or humans to defend a geographical area, often against others of the same species, to mark or maintain control over resources and reproduction.

Related Questions