Answer the Question on the Basis of the Following Table

question 8

Multiple Choice

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

• A) we cannot tell what volume of investment will be profitable.
• 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.

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