Assume that for the entire business sector of a private closed economy there is $0 worth of investment projects which will yield an expected rate of return of 25 percent or more.But there are $15 worth of investments which will yield an expected rate of return of 20-25 percent;another $15 with an expected rate of return of 15-20 percent;and similarly an additional $15 of investment projects in each successive rate of return range down to and including the 0-5 percent range.
Which of the lines on the above diagram represents these data?
A) A
B) B
C) C
D) D

Question

Assume that for the entire business sector of a private closed economy there is $0 worth of investment projects which will yield an expected rate of return of 25 percent or more.But there are $15 worth of investments which will yield an expected rate of return of 20-25 percent;another $15 with an expected rate of return of 15-20 percent;and similarly an additional $15 of investment projects in each successive rate of return range down to and including the 0-5 percent range. 
Which of the lines on the above diagram represents these data?
A) A 
B) B 
C) C 
D) D

Quizplus · Accepted Answer

Line B shows a gradual decrease in the amount of investment projects as the expected rate of return decreases, which matches the description in the problem statement. The other lines do not show this pattern.

Assume That for the Entire Business Sector of a Private