Refer to the information provided in the below table regarding a hypothetical investment schedule to answer the question that follow. Interest Rate (%) Planned Investment ($ Billion) 6. 200 8. 180 10 160 12 140 14 120 16 100 11) Suppose the expenditure multiplier is 5, the initial interest rate is 10%, and the initial equilibrium output is $800 billion. What is the interest rate that increases equilibrium output to $900 billion? a) 12% b) 14% c) 8% d) 16%

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100%
c) $50 million
d) $16.67 million
Refer to the information provided in the below table regarding a hypothetical investment
schedule to answer the question that follow.
Interest Rate (%)
Planned Investment ($ Billion)
200
161
8.
180
10
160
12
140
14
120
16
100
11) Suppose the expenditure multiplier is 5, the initial interest rate is 10%, and the initial
equilibrium output is $800 billion. What is the interest rate that increases equilibrium
output to $900 billion?
a) 12%
b) 14%
c) 8%
d) 16%
Transcribed Image Text:c) $50 million d) $16.67 million Refer to the information provided in the below table regarding a hypothetical investment schedule to answer the question that follow. Interest Rate (%) Planned Investment ($ Billion) 200 161 8. 180 10 160 12 140 14 120 16 100 11) Suppose the expenditure multiplier is 5, the initial interest rate is 10%, and the initial equilibrium output is $800 billion. What is the interest rate that increases equilibrium output to $900 billion? a) 12% b) 14% c) 8% d) 16%
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