Answer the Question on the Basis of the Following Information $\begin{array}{cc}\underline{{i}}&\underline{{I} }\\20&\$50\\16 & 40 \\12 & 30 \\8 & 20 \\4 & 10 \\0 & 0\end{array}$

question 156

Multiple Choice

Answer the question on the basis of the following information.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 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 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.
$\begin{array}{cc}\underline{{i}}&\underline{{I} }\\20&\$50\\16 & 40 \\12 & 30 \\8 & 20 \\4 & 10 \\0 & 0\end{array}$

B.
$\begin{array}{cc}\underline{i} & \underline{I} \\24&\$10\\20 & 20 \\16 & 30 \\12 & 40 \\8 & 50 \\4 & 60\end{array}$

C.
$\begin{array}{cc}\underline{i}& \underline{I} \\20&\$0\\16 & 10 \\12 & 20 \\8 & 30 \\4 & 40 \\0 & 50\end{array}$

D.
$\begin{array}{cc}\underline{i} & \underline{I} \\ 20 & \$ 10 \\16 & 20 \\12 & 30 \\8 & 40 \\4 & 50 \\0 & 60\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

---

Definitions:

Local Culture

The collection of customs, beliefs, art, and way of life that is specific to a geographical area, community, or group, distinct from global or dominant cultures.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, largely driven by international trade and investment, aided by information technology.

Anthony Giddens

A contemporary British sociologist renowned for his theory of structuration and his holistic view of modern societies, including the influences of globalization and identity.

Culture Jamming

Attempts to use the advertisements and billboards of large, multinational corporations against the corporations themselves by reworking their meanings; in other words, semiotic jujitsu.