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1. You can assume that the investment function is given by I = 1,000 - 30r, where r is the real rate of interest (in

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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