Question 34 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. What will be the equilibrium level of aggregate investment if the real interest rate is 20%? Your Answer: Answer

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Question 34
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.
What will be the equilibrium level of aggregate investment if the real interest rate is
20%?
Your Answer:
Answer
Transcribed Image Text:Question 34 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. What will be the equilibrium level of aggregate investment if the real interest rate is 20%? Your Answer: Answer
Question 30
This table shows the balance sheet of the First National Bank. Assume the desired
reserve ratio is 15 percent.
Assets
Cash Reserves
Securities
Loans
Property
If a cheque for $14,000 is drawn and cleared against this bank, its reserves and
demand deposits will be, respectively:
Liabilities and net worth
$50,000
75,000
25,000
100,000
Demand Deposits $120,000
Stock shares
130,000
$50,000 and $106,000.
$50,000 and $120,000.
$36,000 and $106,000.
$36,000 and $120,000.
Transcribed Image Text:Question 30 This table shows the balance sheet of the First National Bank. Assume the desired reserve ratio is 15 percent. Assets Cash Reserves Securities Loans Property If a cheque for $14,000 is drawn and cleared against this bank, its reserves and demand deposits will be, respectively: Liabilities and net worth $50,000 75,000 25,000 100,000 Demand Deposits $120,000 Stock shares 130,000 $50,000 and $106,000. $50,000 and $120,000. $36,000 and $106,000. $36,000 and $120,000.
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