Assume That If the Interest Rate That Businesses Must Pay

question 246

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.Which of the following correctly expresses the indicated relationship as an equation?

• A)i = 20 - 4I.
• B)i = 20 -.4I.
• C)i = 24 -.4I.
• D)i = 20 - 10I.

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Definitions:

Surface Traits

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McCrae and Costa

Psychologists Robert R. McCrae and Paul T. Costa, known for developing the Five Factor Model of personality traits.

Unified Purpose

A shared, collective goal or mission that aligns the efforts and motivations of a group or organization.

Life Narrative

A story compiled by an individual, recounting significant events and experiences of their life.