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

MACROECONOMICS
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ISBN:9781337794985
Author:Baumol
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Chapter7: Economic Growth: Theory And Policy
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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: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
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
$
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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