Suppose the investment demand function is given as the following algebraic function: I = 300 - 1000r where r is the interest rate. Calculate the amount of investment that would take place at an interest rate of ten percent. How much investment would there be if interest rates rose to fifteen percent?
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Q3: Q4: Scenario 1 Q5: Scenario 1 Q6: Draw a flowchart showing the impact of Q7: Graphically illustrate the relationship between interest rate Q9: Critically evaluate the assumption of autonomous investment. Q10: Why is there a negative relationship between Q11: Describe in broad terms what the money Q12: The textbook discusses the "crowding out effect". Q13:
Assume that the investment demand function
Assume that the investment demand function
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