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Mnenie [13.5K]
3 years ago
8

Answer the question on the basis of the following information. Assume that if the interest rate that businesses must pay to borr

ow funds were 20 percent, it would be unprofitable for businesses to invest in new machinery and equipment, so investment would be zero. But if the interest rate were 16 percent, businesses would find it profitable to invest $10 billion. If the interest rate were 12 percent, $20 billion would be invested. Assume that total investment continues to increase by $10 billion for each successive 4 percentage point decline in the interest rate. Refer to the information. Which of the following is an accurate verbal statement of the described relationship?
a. i = 20-10L
b. i = 20-4L
c. i = 20 - 4l
d. i = 24 - 4l
Business
1 answer:
Natalija [7]3 years ago
5 0

Answer:

c. i = 20 - 4l

Explanation:

Investment=0 when interest rate is 20%

And then there is an investment of 10 billion for each 4% decrease in interest rate

Thus a unit % decrease in interest rate is 2.5billion

Thus Interest rate = 20-0.4 Investment

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Economic models are built on principles of departure, called "assumptions." Such assumptions fulfill the same role as the postulates in geometry. That is:

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We can say then, that the theoretical explanations refer to invisible "relationships", whose existence is proposed by the theory, and whose implications are logically deduced, and then corroborated by observations. They consist of:

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3 0
1 year ago
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Gnoma [55]

Answer:

B. On the declaration date

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Hence, in this case, If Garnett dies, the type of ownership Kennedy now have is called SOLE OWNERSHIP

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hope this help u

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