Assume there are no investment projects in the economy that yield an expected rate of return of 25 percent or more. but suppose there are $10 billion of investment projects yielding expected returns of at least 20 percent; another $10 billion yielding at least 15 percent; another $10 billion yielding at least 10 percent; and so forth. a. draw this relationship between the expected rate of return and the amount of investment expenditure. instructions: use the tool provided 'id' to plot the investment demand curve (plot 6 points total). b. what will be the equilibrium level of aggregate investment if the real interest rate is as follows: instructions: enter your answers as whole numbers. 15 percent: 10 percent: 5 percent:

Ardmore farm and seed has an inventory dilemma. they have been selling a brand of very popular insect spray for the past year. they have never really analyzed the costs incurred from ordering and holding the inventory and currently fave a large stock of the insecticide in the warehouse. they estimate that it costs $25 to place an order, and it costs $0.25 per gallon to hold the spray. the annual requirements total 80,000 gallons for a 365 day year. a. assuming that 10,000 gallons are ordered each time an order is placed, estimate the annual inventory costs. b. calculate the eoq. c. given the eoq calculated in part b., how many orders should be placed and what is the average inventory balance? d. if it takes seven days to receive an order from suppliers, at what inventory level should ardmore place another order?