What will be the aggregate amount of investment

Assignment Help Econometrics

Reference no: EM13210129

Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but that there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent, an additional $5 billion between 15 and 20 percent, and so on. If the real interest rate is 15 percent in this economy, what will be the aggregate amount of investment.

Reference no: EM13210129

Questions Cloud

Excessive drugs and vitamins cause death in humans : Every year there is double the amount of people who die, compared to the previous year - Eating unhealthy food, excessive drugs and vitamins cause death in humans.

What are the generic cola demand and supply curves : Industry demand and supply functions for generic (unbranded) 12 ounce cans of cola are as follows: QD = 46,000 - 10, 000P + 3,000Pc + 4Y + 200T (Demand) Qs = 4,000 + 8,000P - 1,000PL - 500PK (Supply) Where P is the average price of generic cola ($..

State benzyle salicylate are needed to manufacture sunscreen : If a tube contains 4.0 oz of sunscreen, how many kilograms of benzyle salicylate are needed to manufacture 325 tubes of sunscreen?

Compute the molar mass of naphthalene : Calculate the molar mass of naphthalene, the organic compound in mothballs, if a solution prepared by disovlving 7.50g of naphthalene in exactly 150g of benzene has a freazing point 2.0 degrees

What will be the aggregate amount of investment : Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but that there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent, an a..

Describe an algorithm : Describe an algorithm for determining if a given list contains a cycle using only constant additional space. The runtime should be O(N), where N is the (unknown) number of elements in the list. (Hint: use two iterators that advance at different sp..

Describe how to use d : Suppose you have two nonempty stacks S and T and a deque D. Describe how to use D so that S stores all the elements of T below all of its original elements, with both sets of elements still in their original order.

Explain the major organic product formed : Predict the major organic product formed when 1-bromobutane undergoes a SN2 reaction with EtONa.

Describe an application : Can you compare the two? 3.Class templates are typically used to replace overloaded functions. Can you compare the two?

User Account

All Pages