If the real interest rate is currently 12 percent and real GDP is $150 billion, what will be the level of planned investment for this country? $ billion
If the real interest rate is currently 12 percent and real GDP is $150 billion, what will be the level of planned investment for this country? $ billion
Chapter7: Economic Growth: Theory And Policy
Section: Chapter Questions
Problem 5DQ
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Transcribed Image Text:The figure below shows the investment demand curve for a fictitious country. Use the information in the figure to answer the question
below.
Expected rate of return and real interest rate (%)
16
DRHRENDSCSA32IO
15
14
13
12
11
10
9
8
5
Investment Demand
10
20
In stment demand curve
30
40
Investment (billions of dollars)
50

Transcribed Image Text:If the real interest rate is currently 12 percent and real GDP is $150 billion, what will be the level of planned investment for this country?
billion
$
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