Assume That for the Entire Business Sector of a Private

question 115

Multiple Choice

Assume that for the entire business sector of a private closed economy, there are $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 an additional $15 of investment projects in each successive rate of return range down to and including the 0-5 percent range.If the real interest rate is 5 percent, what amount of investment will be undertaken?

• A)$15
• B)$30
• C)$45
• D)$60

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Definitions:

New Product Line

A series of related products developed by a company, aimed at capturing a larger share of the market by appealing to different consumer needs.

Car Washes

Businesses specializing in cleaning the exterior and, in some cases, the interior of vehicles, offering a range of services from basic washes to detailed cleaning.

Personal Selling

A direct form of marketing where sales representatives interact face-to-face with customers to inform them about and sell a product or service.

Direct Contact

involves interaction between individuals or entities without intermediaries, allowing for immediate communication or exchange.