The Investment Schedule in the Given Table Indicates That If

question 216

Multiple Choice

$$\begin{array} { | c | c | } \hline \text { Expected Rate of Return (\%) } & \begin{array} { c } \text { Amount of Investment With This Rate of Return } \\\text { or Higher (\$B) }\end{array} \\\hline 12 \% & \$ 10 \\\hline 10 & 20 \\\hline 8 & 30 \\\hline 6 & 40 \\\hline 4 & 50 \\\hline 2 & 60 \\\hline\end{array}$$ The investment schedule in the given table indicates that if the real interest rate is 8 percent, then

• A) we cannot tell what volume of investment will be pro?table.
• B) $30 billion will be both saved and invested.
• C) $30 billion of investment will be undertaken.
• D) $60 billion of investment will be undertaken.

---

Definitions:

Successive Workers

Workers who are added into a production process, one after the other, often evaluated in terms of their marginal contributions to output.

MRP Curve

The Marginal Revenue Product curve, which shows the additional revenue generated by employing one more unit of a resource or factor of production.

Wage Rates

This is the remuneration paid to employees based on the duration of their work, reflecting the value or price of labor in a job market.

Labor Demand

The quantity of workers that employers are willing and able to hire at a given wage rate, in a given time period.