Assume That for the Entire Business Sector of a Private

question 64

Multiple Choice

Assume that for the entire business sector of a private closed economy there is $0 worth of investment projects which will yield an expected rate of return of 25 percent or more.But there are $15 worth of investments which 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.
Which of the lines on the above diagram represents these data?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Equilibrium Quantity

The quantity supplied and demanded at the equilibrium price, where the quantity that buyers are willing to buy is equal to the quantity sellers are willing to sell.

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