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Business, 24.11.2021 01:30 katie673

Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent, an additional $5 billion between 15 and 20 percent, and so on. If the real interest rate is 15 percent in this economy, the aggregate amount of investment will be:. a. $25 billion.
b. $20 billion.
c. $15 billion.
d. $10 billion.

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