1. You can assume that the investment function is given by I = 1,000 - 30r, where...
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Question:
1. You can assume that the investment function is given by I = 1,000 - 30r, where r is the real rate of interest (in percent). Assume further that the nominal rate of interest is 4 percent and the inflation rate is 2 percent. According to the investment function, investment will be _____.
Select one:
A.540
B.700
C.760
D.970
E.940
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