Answer the Question on the Basis of the Following Information

question 107

Multiple Choice

Answer the question on the basis of the following information for a private closed economy.Assume that for the entire business sector of the economy there is $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 similarly an additional $15 of investment projects in each successive rate of return range down to and including the 0-5 percent range. Refer to the given information.The expected rate of return curve:

• A) shows a direct relationship between the interest rate and investment.
• B) is also the investment demand curve.
• C) is indeterminate.
• D) implies a direct (positive)relationship between the interest rate and the level of GDP.

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Definitions:

First Served

Typically part of the phrase "first come, first served," this term denotes a service policy where requests are attended to in the order they were received, without other prioritization.

Assignment Method

A procedure or algorithm used to match tasks, jobs, or resources to agents, machines, or employees in the most efficient way.

Row Values

Specific data points or entries within a row in a spreadsheet or database, representing various attributes of a single record.

Shortest Processing Time

A scheduling priority rule that sequences jobs or tasks based on the shortest time needed to complete them, aiming to minimize the overall processing time.