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Assume That If the Interest Rate That Businesses Must Pay

question 182

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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 that 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 above information.Which of the following is the correct graphical presentation of the indicated relationship? 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 that 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 above information.Which of the following is the correct graphical presentation of the indicated relationship?   A)  line 4 B)  line 3 C)  line 2 D)  line 1


Definitions:

Ship's Log Book

An official record book maintained on board ships, noting important events, navigational data, and management details of voyages.

Ship's Log Book

A record book used on ships to detail voyages, including locations visited, weather conditions, and daily occurrences.

Azores

A group of nine volcanic islands in the North Atlantic Ocean, known for their dramatic landscapes, fishing villages, green pastures, and blue hydrangeas.

Parallel Structure

The repetition of a chosen grammatical form within a sentence to provide clarity and improve writing style.

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