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1. In a hypothetical economy, no investment projects are undertaken when the real interest rate is 12 percent or above, 50 projects worth $1 million
1. In a hypothetical economy, no investment projects are undertaken when the real interest rate is 12 percent or above, 50 projects worth $1 million each are undertaken when the real interest rate is 10 percent, and 50 more projects worth $1 million each are undertaken every time the real interest rate falls by 2 percent until it reaches a value of zero. a. Draw a graph showing the investment demand curve. Plot seven points in total. b. If the interest rate is 4 percent, how much investment will take place in the economy? c. If the interest rate rises to 6 percent, what is the new value of in e tment
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